Amber Enterprises India Limited IPO is set to open for subscription on January 17, with a price band of Rs 855-859 per share.
Company details: Amber Enterprises India Limited is Punjab based manufacturer of air conditioners and its component in India. With the market share of 55.4%, Amber is the market leader in the Room Air Conditioner (RAC) design and manufacturing. Amber manufacture these RAC’s for 8 out of the 10 top RAC brands in India including Daikin, Hitachi, LG, Panasonic, Voltas and Whirlpool. These 8 brands have over 75% of market share in India.
Amber Enterprises India Limited IPO Details
Issue Open: Jan 17, 2018 – Jan 19, 2018
Issue Type: Book Built Issue IPO
Issue Size: [.] Equity Shares of Rs 10 aggregating up to Rs 600.00 Cr
› Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 475.00 Cr
› Offer for Sale of [.] Equity Shares of Rs 10 aggregating up to Rs 125.00 Cr
Face Value: Rs 10 Per Equity Share
Issue Price: Rs 855 – Rs 859 Per Equity Share
Market Lot: 17 Shares
Minimum Order Quantity: 17 Shares
Listing At: BSE, NSE
Objects of the Amber Enterprises India Limited IPO Issue:
The Offer comprises a Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.
1. The Offer for Sale
The Selling Shareholders will be entitled to the proceeds of the Offer for Sale of their respective portion of the Equity Shares. Company will not receive any proceeds from the Offer for Sale.
2. Fresh Issue
Company intends to utilize the Net Proceeds from the Fresh Issue towards the following objects:
a. Prepayment or repayment of all or a portion of certain borrowings availed by the Company; and
b. General corporate purposes.
Strengths of Company / Reasons to invest in Amber Enterprises India Limited IPO
- Market leadership in the RAC OEM/ODM industry.
- Economies of Scale with good financial performance.
- Company revenues grew at 37% CAGR in last 5 years.
Risk Factors / Reasons not to invest in Amber Enterprises India Limited IPO
- Earned low margins of 1.7% to 3% in the last 5 years
- Any slowdown in the RAC industry may adversely impact company business
Grey Market Price Trend as on 15 January 2018 : GMP INR 475/480, Kostak: INR 550
Disclaimer : We are not involve in buying and selling of IPO forms in IPO Grey market.Study the fundamentals of the company before applying for the IPO.