Amber Enterprises shares opened 37.37% higher on the BSE at Rs1,180 apiece, compared to the issue price of Rs859, which was the upper end of the price band of Rs855-859 per share. Photo: Mint
Mumbai: Shares of Amber Enterprises India Ltd on Tuesday surged over 37% on debut on the bourses, after its initial public offer (IPO) was subscribed more than 165 times last week.
The stock opened 37.37% higher on the BSE at Rs1,180 apiece, compared to the issue price of Rs859, which was the upper end of the price band of Rs855-859 per share.
At 10.05am, they were up 31.2% at Rs1,127, while benchmark 30-share Sensex traded 0.65% lower at 36,048.45 points. Earlier in the day, the shares touched a high of Rs1,180 and a low of Rs1,114.10, respectively.
The manufacturer of air conditioners raised Rs600 crore via the IPO, which closed on 19 January. The IPO comprised a fresh issue of shares of Rs475 crore and an offer for sale of shares by promoters of the company Jasbir Singh and Daljit Singh.
The proceeds of the issue will be used for repayment of debt which stands at Rs400 crore and general corporate purposes.
The company on 16 January raised around Rs178.71 crore by selling shares to institutional investors as part of its anchor book allocation.
In financial year 2016-17, Amber posted a revenue of Rs1,652.2 crore, up from Rs1,092.1 crore in the previous year. It earned a profit of Rs27.8 crore, up from Rs24.1 crore in the previous year.
Amber serves customers such as Daikin Industries Ltd, Hitachi Ltd, LG Electronics Inc., Panasonic Corp., Voltas Ltd and Whirlpool Corp.
The company can design and manufacture complete room air-conditioners, including window air-conditioners and indoor units and outdoor units of split air conditioners, with specifications ranging from 0.75 tonnes to 2 tonnes, across energy ratings and types of refrigerants.
Amber also manufactures components such as heat exchangers, motors, inverter and non-inverter printed circuit boards and multi-flow condensers, sheet metal components, copper tubing and injection moldings.
Edelweiss Financial Services Ltd, IDFC Bank Ltd, SBI Capital Markets Ltd and BNP Paribas were the lead managers to the issue.