ADV Partners sells Rs 260-cr stake in Amber pre-IPO

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Updated: February 21, 2018 5:32:33 PM

Private Equity firm ADV Partners has diluted a part of its stake in Amber Enterprises for about Rs 260 crore in a pre-initial public offer (IPO) round.

ADV Partners, IPO, Amber EnterprisesPrivate Equity firm ADV Partners has diluted a part of its stake in Amber Enterprises for about Rs 260 crore in a pre-initial public offer (IPO) round. (Image: IE)

Private Equity firm ADV Partners has diluted a part of its stake in Amber Enterprises for about Rs 260 crore in a pre-initial public offer (IPO) round. The stake has been sold to a group of investors, sources aware of the development told FE. “Edelweiss, Enam Holdings and a couple of other investors bought the stock,” said one of the sources on the condition of anonymity. ADV Opportunities Fund I, LP through their investment entity Ascent holds 41.66% in Amber Enterprises, as per its draft red herring prospectus (DRHP). E-mails sent to ADV Partners and Amber Enterprises did not elicit any response till the time of writing. Amber manufactures air-conditioners, heat exchangers, electrical motors, indoor and outdoor units for split air conditioners and heat exchangers, among other products. The company counts Daikin, Hitachi, LG, Panasonic, Voltas and Whirlpool amongst its customers.

Securities and Exchange Board of India (Sebi) issued its final observations regarding Amber’s IPO on December 5. Amber Enterprises is expected to launch its IPO in January. Amber’s IPO will comprise of a fresh issue of Rs 450 crore and an offer for sale of Rs 105 crore, by promoters Jasbir Singh and Daljit Singh. The company proposes to use proceeds from the fresh issue for prepayment/repayment of all or a portion of certain borrowings and general corporate purposes. For the year ended March 2017, the company posted total revenues of Rs 1,652 crore against Rs 1,092 crore in the previous year. The company posted a net profit of Rs 27.89 crore in FY 17 against Rs 24.10 crore in the previous financial year.

In 2017, 33 companies have raised Rs 65,923 crore through IPOs. Abundance of liquidity in the market and the desire of private equity players to exit their investments has led to heightened activity in the primary market this year.

 Sundar Sethuraman

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