Consumer durables maker and electronics manufacturing services (EMS) group Amber plans to raise Rs 3,000 crore through two fundraising efforts to support its expansion plans, sources told Moneycontrol.
The group plans to raise around Rs 1,500 crore through a qualified institutional placement (QIP) offering of its consumer durables business Amber Enterprises India, a listed entity. Its EMS subsidiary, ILJIN Electronics, is eyeing around Rs 1,200-1,500 crore through an initial public offering (IPO), sources said.
ILJIN has hired investment banks Nuvama, Ambit Capital, DAM Capital and Motilal Oswal for the IPO, they added.
The funds raised will be used to support capex and growth plans of the two businesses, to tap the growing electronics manufacturing opportunity in India, they said.
Amber Enterprises declined to comment on Moneycontrol’s query, citing silent period ahead of its quarterly results announcement.
On July 12, Amber Enterprises board passed an enabling resolution to raise up to Rs 2,500 crore through various means. The resolution will be up for shareholder approval at the annual general meeting on August 11.
“Amber has already started hearing pitches from investment banks for the QIP mandate. While they have a board approval for raising up to Rs 2,500 crore, the offer size is expected to be around Rs 1,500 crore. The final size of the deal will depend on the investor appetite at the time of the launch,” one of the sources cited above said.
The Amber Enterprises stock has gained six percent this year. The company has a market capitalisation of Rs 25,825 crore.
At 1.20 pm, the stock was trading at Rs 7,636 on the National Stock Exchange, down 2.6 percent from the previous close.
Amber Financials
Amber is a major player in the room air- conditioner (AC)industry through its consumer durables division. It makes Acs for several multinational corporations and Indian companies.
Its other businesses include electronics manufacturing services through ILJIN. It also has a third business vertical comprising railway sub-systems and defence.
For FY25, Amber Enterprises reported a 48 percent growth in revenue at Rs 9,973 crore from the year-ago period.
Its earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 53 percent to Rs 796 crore, while profit was up 80 percent at Rs 251 crore.
Its consumer durables business revenue grew by 46 percent to Rs 7,329 crore, while the electronics division reported a 77 percent jump in revenue at Rs 2,194 crore.
The railway sub-systems and defence had a muted year with a revenue of Rs 450 crore, a decline of 6 percent.
ILJIN Electronics
ILJIN specialises in high-precision electronics manufacturing services across smart electronics, automotive, consumer durables, telecom, healthcare, industrial, renewable energy, aerospace and defence sectors.
It offers end-to-end solutions, ranging from product design and PCB manufacturing to embedded software and final assembly.
In June, ILJIN Electronics picked up a majority stake in Bengaluru-based PowerOne Micro Systems Private Ltd, a provider of comprehensive solutions for Battery Energy Storage Systems (BESS), solar inverters, EV chargers and UPS.
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