Following news of plans to demerge its electronics division and start an initial public offering (IPO), Amber Enterprises' shares increased by about 9% to a 52-week high. In FY24, the electronics industry accounted for 20% of total revenue. The stock has risen 138% in the last year and 82.8% in the last six months.
Today's stock market: In intraday trading on Tuesday, December 24, shares of Amber Enterprises jumped by about 9% to a new 52-week high on the BSE in response to rumors that the company is considering demerging its electronics division.According to a report by CNCB TV-18 on Tuesday, Amber Enterprises plans to demerge its electronics section and then list the merged company for an initial public offering (IPO).
According to the news channel, bankers have been hired to handle the electronics division's demerger and initial public offering (IPO), which accounted for 20% of the company's overall revenue in FY24.
At the time this article was written, Mint was unable to independently verify the information.
The three main business sectors of Amber Enterprises, a diversified manufacturing firm, are consumer durables, electronics (EMS), and railway subsystems and mobility.
Room air conditioners (RACs), room AC parts such motors, and other non-room AC parts are all included in the consumer durables category. The EMS company offers solutions for wearable technology, consumer electronics and appliances, smart energy meters, telecom, automotive, and bare board PCBs. Serving industries including Indian Railways, Metro, RRTS, and buses, the third vertical focuses on railway subsystems and mobility, providing integrated solutions for rolling stock clients. These solutions include HVAC systems, doors, gangways, and pantry systems.
Impact of Amber Enterprises' Stock Price
After the event, Amber Enterprises' stock jumped 8.82% to ₹7498.95, which was also the 52-week high. After closing at ₹6,891.10, Amber Enterprises India's stock opened at ₹6,860.
With the stock rising 138 percent in the previous year and 82.80 percent in the last six months, Amber Enterprises shares have produced outstanding results for its owners. The stock has also provided multibagger returns of 612 percent over the last five years, demonstrating its capacity to regularly pay up to investors.
The Financial Performance of Amber Enterprises
Amber Enterprises reported an 82% increase in its operating revenue to ₹1,685 crore in the second quarter of FY25, driven by strong consumer demand brought on by longer summers and lower channel inventories during that time. The company's most recent financial quarter results also show promise.
In the September 2024 quarter, the business turned a profit after taxes.
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