Amber Enterprises Gains 9% After Launch of QIP Issue

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MUMBAI :
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.

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