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Amber Enterprises on Friday said its subsidiary IL JIN Electronics India Pvt Ltd entered a definitive agreement for the purchase of a majority stake in Shogini.
Financial considerations of the transaction have not been disclosed, and will be done so separately after the transaction is closed, Amber Enterprises said, adding that the deal will be done at a mutually agreed value.
Shogini is one of the top five PCB manufacturers in India. It manufactures printed circuit boards (PCBs), including single-sided, double-sided, multi-layered, metal clad and flex PCBs from its facility in Pune. It provides PCB solutions across various applications such as automotive, medical electronics, defence, industrial electronics, process control, power electronics, telecommunication, LED lighting, computer peripheral, among others.
The acquisition is likely to be completed in one or more tranches and no definitive timeline has been shared for the completion of the acquisition.
Amber Enterprises had also recently acquired another major PCB manufacturer Ascent Circuits, and has plans to spend ₹3,000 crore on HDI PCB in its joint venture (JV) with Korea Circuits.
Brokerage firm Kotak Institutional Equities maintained its "add" rating on the stock with a price target of ₹8,200 apiece, which implies an upside potential of 10.8% from Friday's closing price.
The brokerage sees this acquisition helping Amber Enterprises cement its leadership position in the domestic PCB segment and expects PCBs to contribute more than 40% of the company's $1 billion electronics segment revenue target by financial year 2028.
Amber Group's executive chairman and CEO Jasbir Singh said Shogini strengthens the bare PCB vertical and the group's progression into a leading full-stack, backward-integrated electronics manufacturing services (EMS) company.
"Together with Ascent Circuits' existing facility, the upcoming new facility, and our strategic JV with Korea Circuit, we are laying a strong foundation to emerge as a leading PCB manufacturer in the country, offering comprehensive solution across single-sided, double-sided, multi-layer, HDI, flex and semi-conductor substrate PCBs," he added.
Abhijit Tamhankar, Chairman & Managing Director of Shogini, said together with Amber Group, the company aims to accelerate growth, empower teams and enhance value to their customers across diverse sectors.
Shares of Amber Enterprises ended the previous session 3.9% up. The stock has declined 10.3% in the past month but has gained 18.4% in the last six months.
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