About the Company:
Amber Enterprises Ltd is a market leader in the RAC OEM/ODM industry in India with a market share of 55.4% in terms of volume in Fiscal 2017.
They are a one-stop solutions provider for the major brands in the RAC (Room Air Conditioner) industry and currently serve eight out of the 10 top RAC brands in India.
From a single factory in Rajpura, Punjab, that commenced operations in 1994,they have today grown to 11 manufacturing facilities across seven locations in India.
Company’s manufacturing facilities has a total installed capacity as on March 31, 2017 to manufacture up to 1.59 million ODUs (Outdoor Units) , 1.37 million IDUs (Indoor Units) and 0.59 million WACs (window air conditioners) annually.
Company’s manufacturing facilities have a high degree of backward integration and are strategically located in proximity to the customers’ facilities. All the manufacturing facilities, except Kala Amb (which is currently non-operational) confirm to ISO 9001:2008 or ISO 9001:2015 quality management systems certification.
Company’s key customers include leading RAC brands such as Daikin, Hitachi, LG, Panasonic, Voltas and Whirlpool.All the customers together command around 75% share in the Indian RAC market in Fiscal 2017.
A majority of company’s revenue is derived from the top 10 customers. Sales from their top 5 and top 10 customers contributed 74.77% and 92.52%, respectively, of the revenue from operations in Fiscal 2017.
Company provides customers a range of manufacturing solutions at their doorsteps by supplying them components and RACs through OEM/ODM models.
In recognition of Company’s efficient services and products, they have also received several awards from their customers such as ‘Best of Best Performance Award’ from LG for 2015 and 2016 and ‘Leadership Business Innovation Award’ from Panasonic for 2015-2016.
Currently company also export to Saudi Arabia, Oman, Sri Lanka, Nigeria and Maldives.
Company’s Product portfolio is as follows:
RACs: (Room Air Conditioners)
They design and manufacture complete RACs including window air conditioners (“WACs”) and indoor units (“IDUs”) and outdoor units (“ODUs”) of split air conditioners (“SACs”) with specifications ranging from 0.75 ton to 2 ton, across energy ratings and types of refrigerant. We also design and manufacture Inverter RACs on ranging from 1 ton to 2 ton.
RAC Components: (Room Air Conditioner Components)
They manufacture critical and reliability functional components of RACs such as heat exchangers, motors, inverter and non-inverter printed circuit boards and multi-flow condensers.They also manufacture other RAC components such as sheet metal components, copper tubing and injection molding components.
Other Components (Non AC Components):
They manufacture components for other consumer durables and automobiles such as case liners for refrigerator, plastic extrusion sheets and printed circuit boards for consumer durables and automobile industry, sheet metal components for microwave, washing machine tub assemblies and for automobiles and metal ceiling
industries.
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Management Team:
- Mr.Jasbir Singh (Designation: Chairman and Chief Executive Officer)
- Mr.Daljit Singh (Designation: Managing Director)
- Mr.Manoj Kumar Sehrawat (Designation: Nominee Director)
Promoters Stake Pre & Post Issue:
| Shareholder Name | Pre Issue Stake (%) | Post Issue Stake |
|---|---|---|
| Promoters | ||
| Jasbir Singh | 30.05% | 22.45% |
| Daljit Singh | 26.24% | 19.32% |
| Promoter Group Entities | 2.74% | 2.25% |
| Total | 59.02% | 44.02% |
Objectives of the Issue:
Offer for Sale: (Around Rs. 125 crores)
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Around Rs. 475 crores)
- Prepayment or repayment of all or a portion of certain borrowings availed by the Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Prepayment or repayment of all or a portion of certain borrowings availed by the Company | 400 |
| General Corporate Expenses | 200 |
| Net Proceeds | 600 crores |
Peer Group Companies:
- None of the listed companies in India are engaged in line of business as Amber Enterprises.Hence we cannot make any Comparison.
Positives for the Company:
Market leadership in the RAC OEM/ODM industry in India.
Company is a market leader in the RAC OEM/ODM industry in India with a market share of 55.4% in terms of volume in Fiscal 2017. Further,Company’s share of the overall RAC market in India in terms of volumes has grown from 14.7% in Fiscal 2015 to 19.1% in Fiscal 2017
Strong customer relationships with the majority of leading RAC brands in India.
They have strong and established relationships with the customers, which includes eight out of the 10 top RAC brands in India. Our key customers include leading RAC brands such as Daikin, Hitachi, LG, Panasonic, Voltas and Whirlpool. Our customers command around 75% share in the Indian RAC market.
Economies of Scale:
Multiple manufacturing locations allows them for the optimal utilisation of facilities and also enables them to distribute manufacturing across them and deliver the clients on time.
One stop solutions provider for the RAC industry with high degree of backward integration
The Indian RAC market volumes are expected to grow at a CAGR of 12.8% from Fiscal 2017 to Fiscal 2022.Due to the current low penetration of 4%, the Indian RAC market presents huge growth opportunity.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 882.33 | 979.70 | 1236.46 | 1092.11 | 1652.25 | 941.55 |
| Net Profit | 19.48 | 21.62 | 28.78 | 24.10 | 27.89 | 27.31 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 17th January 2018 |
| Issue Closes on:. | 19th January 2018 |
| Issue Price | Rs.855 – 859 |
| Face Value | Rs.10 |
| Minimum Lot | 17 shares |
| Minimum Investment | Rs.14,603 |
| Issue Constitutes | 22.21%% |
| Issue Size | Rs.600 cr ($ 94 million) |
| Market Cap | Rs.2701 cr ($424 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 55,29,685 |
| Equity Shares Offered (OFS) | 14,55,180 |
| Total Equity Shares Offered (Fresh + OFS) | 69,84,865 |
| Equity Shares Prior to the Issue | 2,59,16,858 |
| Equity Shares after the issue | 3,14,46,540 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 24th January 2018 |
| Initiation of Refunds | on or Before 25th January 2018 |
| Credit of Equity Shares: | on or Before 29th January 2018 |
| Listing Date: | on or Before 30th January 2018 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 13,93,578 | 2.02 | 6.03 | 174.9 |
| NII | 10,45,132 | 0.098 | 0.496 | 51.92 |
| Retail | 24,38,641 | 0.88 | 3.61 | 11.23 |
| Employee | 50,000 | 0.33 | 1.26 | 2.26 |
| TOTAL | 49,27,351 | 1.04 | 3.63 | 165.21 |
Anchor Investor Participation Update:
- Amber Enterprises Ltd raised Rs 178.71 crore by selling shares to Anchor Investors.
- Shares were allocated to 15 anchor investors at Rs.859 per share.
- Prominent names that participated in the anchor book allocation include Abu Dhabi Investment Authority, Black Rock India, Goldman Sachs India, ICICI Prudential Value Fund, HDFC Small Cap Fund and Reliance Capital Trustee Co Ltd.
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 12.80 | 67.10% | 8.33% | 140.67 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 15% |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 29/1/18 | Amber Enterprises Ltd | 855 – 859 | 353 – 357 | 900 – 950 |
| Check IPO Allotment Status: |
|---|
Karvy Website (Click on the Below Link)http://kosmic.karvy.com:81/ipotrack/ |
| Company Contact Info: |
|---|
| Amber Enterprises Ltd C-1, Phase – II Focal Point Rajpura Town – 140 401, Punjab Tel: +91 1762 232126 Fax: +91 1762 232127 Email: info@ambergroupindia.com Website: www.ambergroupindia.com |
| IPO Registrar Info: |
|---|
| Karvy Computershare Private Limited Karvy Selenium Tower B Plot 31 and 32, Gachibowli Financial District, Nanakramguda Hyderabad 500 032 Tel: +91 40 6716 2222 Fax: +91 40 2343 1551 E-mail: amber.ipo@karvy.com Investor e-mail: einward.ris@karvy.com Website: www.karishma.karvy.com |
