The Gurugram-based contract manufacturer Amber Enterprises is aiming to raise Rs 555 crore through an initial public offer and plans to utilise a part of the proceeds to retire debt.
The company, which contract-manufactures ACs for Voltas, Hitachi, Daikin, Godrej, LG, Panasonic and Whirlpool among others, expects to get Sebi approval for the issue soon. It had filed IPO papers with the market watchdog in September.
Amber had Rs 415 crore debt as of August-end and as per the IPO papers, it proposes to utilise around Rs 345 crore from the share sale to repay debt.
"We'd filed the draft red herring prospectus (DRHP) with the Sebi on September 29. I think we should get the approval by the end of November and after that we will be IPO-ready. We'll plan the timing after the approval," Amber's managing director Daljit Singh said.
The IPO comprises fresh issue of shares worth Rs 450 crore and an offer-for-sale to the tune of Rs 105 crore.
The Hong Kong-based private equity player ADV Partners holds around 41 per cent in the company and the remaining stake is with the promoters/promoter group.
Singh said the promoters would continue to remain majority owners even after the IPO, but did not divulge the details of the stake they would be offloading.
Amber has 10 manufacturing facilities across seven locations and is open inorganic growth but Singh did not share details.
The company also makes refrigerator components, water purifiers and washing machines but is primarily focused on air conditioners.
"Air-conditioners are the least penetrated and there is a lot of potential in this segment. We are strong enough to cater to the future demand," Singh said, adding that he has no plans to launching private labels in the segment.
Amber had around Rs 1,650 crore revenue last fiscal, with room ACs contributing 65 to 70 per cent of sales and the remaining from components.
Edelweiss, IDFC Bank, SBI Caps and BNP Paribas are managing the IPO.