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Amber Enterprises lists 37% above issue price

Shares of Amber Enterprises, which manufactures air conditioners and components, ended with a gain of nearly 45% against the issue price of Rs 859 in its debut trade on Tuesday.

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The stock listed at Rs 1180, 37.4% above its issue price on BSE. During the day, it zoomed 47% to Rs 1,263. (PTI)

Shares of Amber Enterprises, which manufactures air conditioners and components, ended with a gain of nearly 45% against the issue price of Rs 859 in its debut trade on Tuesday. The stock listed at Rs 1180, 37.4% above its issue price on BSE. During the day, it zoomed 47% to Rs 1,263. The stock finally closed at Rs 1,237.25, rising sharply by 44%. On NSE, shares of the company advanced by 44.96% to close at Rs 1,245.25. In terms of equity volume, 18 lakh shares of the company were traded on BSE and over 1 crore shares changed hands on NSE during the day. The company’s market valuation stood at Rs 3,890.72 crore. The Rs 600-crore initial public offering (IPO) of Amber Enterprises was subscribed more than 165 times. Investors bid for 81.34 crore shares against 49.27 lakh shares reserved for them, bidding 165 times. The company, which has 11 manufacturing facilities across seven locations in India, had priced its IPO between Rs 855 and Rs 859. When calculated at the upper-end of the price band, this will put the offer size at Rs 600 crore. The offer was to help the company repay a portion of its borrowings and for the promoters to realize some value through dilution of a 10% stake. The issue comprised of new shares worth Rs 475 crore and an offer for sale worth Rs 125 crore.

The proceeds from the offer for sale will go to the promoters, while the proceeds from the fresh issue will be used for repayment of a portion of its borrowings and other corporate purposes. For the six months ended September 2017, the company posted a net profit of Rs 27.31 crore. For the year ended March 2017, the company posted a net profit of Rs 27.89 crore against Rs 24.10 crore in the previous financial year.

Amber joins a long list of companies that have raised funds from the market in the recent past. In 2017, 36 companies raised Rs 67,147 crore through IPOs. Listing gains and the positive sentiment in the market are among the reasons attributed to the trend. Market participants said the first three months of 2018 is expected to see robust activity in the primary market.

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First published on: 31-01-2018 at 04:24 IST
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