PE-backed Amber Enterprises files for India IPO

The offer will comprise an undisclosed amount of newly issued shares for up to INR4.5 billion and shares from existing investors expected to generate up to INR1.05 billion, according to a prospectus. ADV will not sell any shares in the IPO. Pricing for has not yet been announced.

Amber is the market leader in India's residential air conditioner (RAC) industry, with a market share of 55.4% in terms of volume for the 2017 financial year, according to Frost & Sullivan.

The company manufactures complete RAC units for leading brands including Hitachi, LG, Panasonic, and Whirlpool, along with critical components including heat exchangers, motors, condensers, and copper tubing. Amber also supplies components to customers in the automotive and refrigerator industries.

The majority of the proceeds from the fresh shares, INR3.5 billion, will be used to pay down Amber's debt. By repaying and prepaying its loans Amber hopes to free up capital for investment in further business growth while improving its ability to raise capital in the future. The company currently has INR3 billion in long-term liabilities and INR6.5 billion in short-term liabilities.

For the year ended March 2017 Amber reported INR16.5 billion in revenue, up from INR10.9 billion the year before. Over the same period net profit grew from INR241 million to INR279 million.

ADV holds 9.9 million shares in Amber, giving it a 41.7% stake. The PE firm acquired the shares earlier this year from Fairwinds Private Equity, previously known as Reliance Equity Advisors, along with the company's promoters. Reliance bought its 34% stake across two tranches in 2012 and 2013.

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• Topics
• South Asia
• Industrials
• IPO
• India
• ADV Partners
• manufacturing
• Exit