Amber Enterprises India IPO fully subscribed

Receives bids for 50.17 lakh shares

The initial public offer (IPO) of Amber Enterprises India received bids for 50.17 lakh shares on the first day of the bidding for the IPO today, 17 January 2018, data on NSE showed as at 17:00 IST. The IPO was subscribed 1.02 times. The company has fixed the price band of Rs 855 to Rs 859 per equity share. The IPO closes on 19 January 2018.

Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 16 January 2018 finalized allocation of 20.80 lakh equity shares to 15 anchor investors at Rs 859 per share.

The offer comprises an IPO of Rs 475 crore. At the lower price band of Rs 855 per share, the offer works out to 55.56 lakh equity shares. At the higher price band of Rs 859, the issue size is 55.30 lakh equity shares. The offer also comprises offer for sale of Rs 125 crore. At the lower price band of Rs 855 per share, the issue works out to 14.61 lakh equity shares. At the higher price band of Rs 859, the issue size is 14.55 lakh equity shares. The selling shareholders, comprising promoters Jasbir Singh and Daljit Singh, will offer total Rs 125 crore worth of shares (Rs 62.50 crore each).

The object of the issue is to repay certain borrowings of Rs 400 crore. The balance funds will be utilized for other corporate purposes apart from the benefits of listing the equity shares on the BSE and the NSE such as enhanced visibility and brand image and providing liquidity to the existing shareholders.

On a consolidated basis, Amber Enterprises India reported net profit of Rs 27.31 crore on net sales of Rs 938.16 crore in half year ended 30 September 2017.

Amber Enterprises India is the leading room air conditioner (RAC) original equipment manufacturer (OEM) and original design manufacturer (ODM) in India, with market share of 55.4% by volumes in the fiscal year ended March 2017 (FY 2017). Nine of the top 10 RAC brands including Daikin, Hitachi, LG, Panasonic, Voltas and Whirlpool are customers. They commanded nearly three-fourth share of the Indian RAC market in FY 2017.

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