Amber Enterprises, a leading contract maker of room air conditioners (ACs), has launched a qualified institutional placement (QIP) on September 7 to raise around Rs 400 crore for growth capital, a source told Moneycontrol. “The QIP has been launched today (September 7) at a floor price of Rs 1,798.72 per share. It has received strong demand from institutional investors,” the source added. A second source confirmed the same, adding that Edelweiss and JM Financial are the bankers to the deal.
Moneycontrol was the first to report on the firm’s QIP plans on August 21 and had indicated that the launch was likely in September.
The Amber Enterprises’ stock closed 0.17 percent lower at Rs 1,837.75 in a flat overall market.
Moneycontrol couldn’t immediately connect with Amber Enterprises, Edelweiss and JM Financial for an official response.
Amber Enterprises is a contract maker for eight of the top 10 brands such as Voltas, Panasonic, LG, among others. The promoters own 44 percent, Asian private equity fund ADV Partners owns nearly 21 percent and Goldman Sachs entities control 4.86 percent shareholding in the Gurugram-based company.
Post the outbreak of COVID-19, the government put its weight behind the ‘Make in India’ initiative, in a bid to deter excessive dependence on one supplier nation -- China, which accounts for around 14 percent of India’s imports.
Amber has been a beneficiary of this drive and 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.
A research report by Ambit Capital dated August 19 highlights the positioning of Amber Enterprises. “Amber is a leader in ODM (original design manufacturer) solutions (22 percent domestic RAC share) with a wide range of indoor and outdoor units and window ACs. It has successfully created manufacturing dependence for leading AC brands that prefer asset-light business models. Additional focus on components (33 percent FY20 sales) presents a significant cross-selling opportunity, even for non-AC durables,” the report said.
“Through 15 facilities in close proximity to clients, Amber has significant economies of scale to provide cost-effective solutions,” it added.
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