InvestorQ : How do you see the Rs.500 crore share sale by Amber Enterprises?
Deepa Salunkhe made post

How do you see the Rs.500 crore share sale by Amber Enterprises?

Answer
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Arya Nanda answered.
4 weeks ago


Here is what you need to know about the Amber Enterprises share sale.

· Amber Enterprises, a contract manufacturer of consumer durables, will be coming out with a share sale of Rs.500 crore to raise funds in the market

· Amber typically manufacturers on behalf of many global brands like LG, Daikin, Blue Star, Panasonic and Hitachi and is a leader in consumer durables contracting

· Amber will launch qualified institutional placement or QIP offering subject to approval by the board of the company

· These funds will be use to bankroll the long-term growth of its businesses as well as to extend loans to its subsidiaries for long-term and short-term business needs

· The company could emerge as veritable player in the outsourcing field with the government launching an aggressive Atma Nirbhar campaign to in-source manufacture to the extent possible.

· Amber sees a huge opportunity as rising tensions between China and the rest of the world is leading most economies to look at alternatives to China and India may be best positioned to fill the gap.

· Outsourcing specialists like Amber is therefore looking to raise money to take advantage of these shifts as India tries to become a nerve centre of the global supply chains.

· Amber would be a major beneficiary of the focus on import substitution in products like room ACs where nearly 40% of the output is imported.

That broadly explains why the stock of Amber has rallied so sharply in the last few months and the rally also helps the company get a good price for its QIP placement.