The initial public offering of Amber Enterprises concluded on Friday and was subscribed by a whopping 165 times. Investors bid for 81.34 crore shares against 49.27 lakh shares reserved for them, bidding 165 times. Qualified institutional investors subscribed 174.99 times of the shares offered to them. High Net Worth Individuals, retail investors, and employees subscribed 519, 11 and 2.27 times respectively of the shares allotted to them. Amber Enterprises which is engaged in the manufacture of air conditioners and components has priced its initial public offering (IPO) between Rs 855 to 859. When calculated at the upper-end of the price band, this will put the offer size at Rs 600 crore. The issue will open on January 17 and close on January 19. The anchor investor allotment will be on January 16. Investors can apply for a minimum of 61 shares and multiples of 61 thereof. The offer is 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 comprises 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. The company is engaged in the manufacture of air conditioners, components of air conditioners and parts for other consumer durables and automobiles such as case liners for refrigerator, plastic extrusion sheets, and printed circuit boards. The company has 11 manufacturing facilities across seven locations in India.
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 quarter of 2018 is expected to see robust activity in the primary market.