Equipment manufacturer Amber Enterprises' Rs 6-bn IPO subscribed 3.7 times

The Rs 6-billion IPO of Amber Enterprises has garnered nearly four times subscription a day before its close. The institutional and retail portion of the IPO has been subscribed six times and 3.6 times respectively, while the wealthy investor portion has been half covered. The issue comprises of Rs 4.75 billion of secondary share sale and fresh fundraising of Rs 1.25 billion, which will be used to repay debt. 

The company is an original equipment manufacturer (OEM) of air conditioner (AC) components. The company’s key clients include Daikin, Hitachi, LG, Panasonic, Voltas and Whirlpool. For FY17, the company had reported revenues of Rs 16.4 billion and profit of Rs 280 million. The price band for the IPO is Rs 855 to Rs 859 per share. At the top end, the company will be valued at Rs 27 billion.