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Amber Ent dips 9% in 2 days on profit booking after completion of QIP issue

The company raised Rs 400 crore via QIP

Amber Enterprises | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

Representative image

Shares of India slipped 7.6 per cent to Rs 1,756 on the BSE on Friday, falling 9.4 per cent in the past two trading days on profit booking after the company completed its qualified institutional placement (QIP) issue. The stock has fallen 12 per cent from its record high level of Rs 1,997, touched in Tuesday's intra-day trade.

The company is engaged in consumer electronics business has raised Rs 400 crore via QIP. It issued shares to qualified institutional buyers at an issue price of Rs 1,780 per share. The QIP opened on Monday, September 7, 2020 and closed on Thursday, September 10, 2020.

Despite the past two day’s decline, the stock has outperformed the market by gaining 30 per cent in the past three months, as compared to 16 per cent rise in the S&P BSE Sensex.

Ahead of the QIP, in a draft placement document, Amber had said that it intends to raise funds for capital expenditure required for the long-term growth of its businesses; extend loans to and invest in its subsidiaries for their long-term and short-term business purposes, repay debt, and make strategic acquisitions or joint ventures.

India is engaged in the business of air conditioners and its components. In our view, we expect the company will raise money for future working and capex requirement which is 5-7 per cent of current share capital. We believe that increasing demand for contract manufacturing in India due to the “Atma Nirbhar Bharat” initiative by the government. This is a positive move by the company to take advantage of the growing opportunity in India,” Amarjeet Maurya- AVP - Mid Caps, Angel Broking, said after the company launched the QIP.

At 01:19 pm, was trading 7 per cent lower at Rs 1,774, top loser among S&P BSE 500 index. The trading volumes on the counter jumped multiple-fold with a combined 6.4 million equity shares changing hands on the NSE and BSE, so far.

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First Published: Fri, September 11 2020. 13:23 IST