Amber Enterprises shares surged nearly 8% today after reports surfaced about the company’s plans to demerge its electronics division. The demerged business is likely to go public through an Initial Public Offering (IPO). According to CNBC-TV18, the electronics division contributed 20% of Amber Enterprises’ total revenue in FY24.
The company is reportedly in the process of appointing bankers for the demerger and IPO. This strategic move aligns with Amber’s vision to unlock value from its rapidly growing electronics business.
As of 11:55 am, Amber Enterprises shares were trading 7.56% higher at ₹7,430.00. The stock has delivered remarkable returns this year, with a 125.98% gain year-to-date and a 129.99% rise over the last year.
Key highlights from the report:
- The demerger and IPO plans indicate Amber’s commitment to enhancing shareholder value.
- The electronics division currently trades at a forward PE of 54x for FY26, compared to 99x for its peer, Dixon Technologies.
- Amber Enterprises’ stock has risen 93% in 2024, trailing Dixon’s 182% surge during the same period.
This development reinforces the company’s strategic focus on scaling its electronics business, setting the stage for future growth and investor interest.
