Stock market today: Shares of Amber Enterprises surged nearly 9 per cent to a fresh 52-week high on the BSE in intra-day trade on Tuesday, December 24, following reports that the company is looking to demerge its electronics business.
CNCB TV-18 on Tuesday reported that Amber Enterprises is looking to demerge its electronics division and will subsequently float an IPO of the demerged unit.
Bankers have been appointed for the demerger and IPO of the electronics division, which contributed 20 per cent of the company’s total revenue in FY24, the news channel added.
Mint could not independently verify the information at the time of writing this report.
Amber Enterprises is a diversified manufacturing company that operates across three key business areas: consumer durables, electronics (EMS), and railway subsystems and mobility.
The consumer durables segment includes room air conditioners (RAC), components for room ACs like motors, and other non-room AC components. The EMS business provides solutions for telecom, automotive, smart energy meters, consumer electronics and appliances, wearables, and bare board PCBs. The third vertical focuses on railway subsystems and mobility, offering integrated solutions for rolling stock customers, covering HVAC systems, doors, gangways, and pantry systems, serving sectors like Indian Railways, Metro, RRTS, and buses.
Amber Enterprises Stock Price Impact
Following the development, Amber Enterprises shares surged 8.82 per cent to ₹7498.95, also their 52-week high. Amber Enterprises India stock opened at ₹6,860, as against its previous close of ₹6,891.10.
Around 2 pm, the stock was trading 5.65 per cent higher at ₹7,280.30 on the BSE.
Amber Enterprises shares have delivered impressive returns to its shareholders, with the stock rallying 82.80 per cent in the last six months and 138 per cent in the last one year. Over a five-year period, too, the stock has offered multibagger returns to the tune of 612 per cent, highlighting its ability to consistently reward investors.
Amber Enterprises’ Financial Performance
The company’s latest financial quarter results also paint a promising picture, as Amber Enterprises reported an 82 per cent jump in its revenue from operations to ₹1,685 crore in the second quarter of FY25, led by strong consumer demand owing to prolonged summers and lower channel inventories during the period.
The company swung to profit in the September 2024 quarter, reporting a profit after tax of ₹21 crore, as against a loss of ₹6 crore.
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