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Amber Enterprises gains 9% after launching QIP issue

Shares of Amber Enterprises gained as much as 8.67% on Tuesday to hit a 52-week high of 1,997.40, after it launched a qualified institutional placement (QIP) to raise around 400 crore.

At 12:43 pm, Amber Enterprises was trading at 1957.15 apiece on the BSE, up 6.5% from its previous close, while the benchmark Sensex advanced 0.75% to 38,707.16.

The company has launched the QIP issue at a floor price of 1,798.72 per share, a discount of 2% on Friday’s closing price of 1835.60.

“Amber Enterprises India launched QIP at a floor price of Rs1,798.72 per share. In our view, we expect the company will raise Rs300-400cr money for future working and capex requirement which is 5-7% of current share capital. We believe that increasing demand for contract manufacturing in India due to the “Atma Nirbhar Bharat” initiative by the government. This is a positive move by the company to take advantage of the growing opportunity in India,” said analysts at Angel Broking.

Amber’s fundraising plans come at a time when the Union government’s ambitious Atmanirbhar Bharat plan, which aims to make India a nerve centre of global supply chains, has buoyed its stock.

Since the start of the year, Amber shares have 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 net profit of 61.22 crore during the previous quarter ended June 2019. Sales declined 79.01% to 259.45 crore in the Q1FY20 as against 1235.94 crore during the same quarter of the previous fiscal.

Amber Enterprises is a contract maker 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 board assembly and mobile ACs for railways and buses.-Livemint

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