Amber Enterprises shares gained up 8.67% on Tuesday to hit a 52-week high ₹1997.40, after launching a Qualified Institutional Placement (QIP) to raise approximately ₹400 crore.
At 12:43 p.m., Amber Enterprises was trading at ₹1,957.15 each on BSE, up 6.5% from its previous close, while the benchmark Sensex rose 0.75% to 38,707.16.
The company launched the QIP program at a floor price of ₹1,798.72 per share, or a 2% discount on the Friday closing price of ₹1835.60.
“Amber Enterprises India launched QIP at a floor price of Rs 1,798.72 per share. In our opinion, we expect the company to raise funds Rs300-400cr for future operating and capex needs, which is 5-7% of current share capital. We believe that the growing demand for contract manufacturing in India is due to the government’s “Atma Nirbhar Bharat” initiative. This is a positive move by the company to take advantage of the growing opportunity in India, ”analysts at Angel Broking said.
Amber’s fundraising plans come at a time when the Union Government’s ambitious Atmanirbhar Bharat plan, which aims to make India a nerve center in global supply chains, has stepped up its action.
Year to date, Amber stock has gained 74% against a loss of 6% in the benchmark Sensex.
Amber Enterprises reported a net loss of ₹22.45 crore for the quarter ended June 2020 against a net profit of ₹61.22 crore in the previous quarter ended June 2019. Sales decreased 79.01% to ₹259.45 crore in the Q1FY20 against ₹1,235.94 crore in the same quarter of the previous fiscal year.
Amber Enterprises is a contractor for eight of the top 10 electronics brands such as Voltas, Panasonic, LG, among others. Its product portfolio includes room AC components, non-AC components for washing machines, refrigerators and microwaves, printed circuit assemblies and mobile ACs for railways and buses.