Amber Enterprises India Limited has made a strategic move by acquiring the complete stake in Iljin Holding Ltd, transforming it into a wholly-owned subsidiary. This acquisition is expected to bolster Amber's investment in Unitronics, signaling a significant step in the company's growth strategy.

Acquisition Details

The acquisition was executed through IL JIN Electronics (India) Private Limited (ILJIN), a material subsidiary of Amber Enterprises. Here are the key details of the transaction:

Financial Implications

To facilitate the acquisition of Unitronics and cover ILJIN Holding's operating expenses, ILJIN has made a substantial financial commitment:

Strategic Significance

This acquisition aligns with Amber Enterprises' Electronic Division's strategy to expand into industrial applications. The move is expected to:

1. Enhance backward integration capabilities for localized manufacturing
2. Improve competitiveness in the Indian market
3. Capitalize on the growing demand for Industry 4.0 solutions and real-time data-driven technologies
4. Provide access to global markets, particularly in the US and Europe

Corporate Structure Impact

As a result of this acquisition:

• ILJIN Holding Ltd becomes a wholly-owned subsidiary of IL JIN Electronics (India) Private Limited
• ILJIN Holding Ltd also becomes a step-down wholly-owned subsidiary of Amber Enterprises India Limited

Regulatory Compliance

The company has duly informed the stock exchanges about this acquisition, complying with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This strategic move by Amber Enterprises demonstrates the company's commitment to expanding its technological capabilities and global reach. As the integration process unfolds, stakeholders will be keen to observe how this acquisition enhances Amber's position in the industrial technology sector and contributes to its long-term growth objectives.

Amber Enterprises India Limited, a key player in the electronics manufacturing sector, has announced a significant development for its material subsidiary, ILJIN Electronics (India) Private Limited. ILJIN has successfully executed agreements to raise Rs 550.00 crore through the issuance of Compulsorily Convertible Preference Shares (CCPS) to a group of prominent investors.

Investment Details

ILJIN Electronics will issue 8,45,092 Compulsorily Convertible Preference Shares (CCPS) to raise the funds. This strategic move is aimed at fueling both organic and inorganic growth within the company's electronics segment. The investment comes at a time when the electronics manufacturing sector in India is experiencing rapid expansion.

Investor Lineup

The diverse group of investors participating in this funding round includes:

1. Singularity Equity Fund
2. Axis New Opportunities AIF
3. Nuvama Crossover Opportunities Fund
4. Motilal Oswal Finvest Limited
5. Avendus Future Leaders Fund III
6. Incred Wealth And Investment Services
7. Frangipani Capital Advisors

Impact on Ownership Structure

Prior to this transaction, Amber Enterprises held a 90.22% stake in ILJIN's total paid-up equity share capital. Following the CCPS issuance, Amber's shareholding percentage in ILJIN is expected to decrease. The exact change in ownership structure will be determined upon the conversion of the CCPS, which will occur at a mutually agreed price between the parties at the time of conversion.

Investor Rights

As part of the agreement, the investors will receive standard pre-emptive rights and other customary rights typical for this type of transaction. These rights are designed to protect the interests of the new stakeholders while aligning with the company's growth objectives.

Strategic Implications

Konica Yaadav, Company Secretary and Compliance Officer of Amber Enterprises India Limited, stated in the regulatory filing, "The purpose of executing the aforementioned Definitive Transaction Agreements is to facilitate the raising of funds of Rs. 550 Crores by ILJIN for organic and inorganic growth of the electronics segment of the Company."

This substantial investment is expected to strengthen ILJIN Electronics' position in the market and provide the necessary capital for expansion and technological advancements in the rapidly evolving electronics industry.

Regulatory Compliance

The transaction has been executed in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Amber Enterprises has assured that further disclosures regarding the impact of the transaction, including changes in shareholding and subsidiary structure, will be provided separately in due course, post-conversion of the CCPS.

As the electronics manufacturing sector continues to grow in importance, particularly with the government's push for domestic production, this investment in ILJIN Electronics signals confidence in the company's potential and the broader industry outlook. Stakeholders will be keenly watching how this capital infusion translates into growth and market positioning for both ILJIN Electronics and its parent company, Amber Enterprises India Limited.