A diversified B2B company having three business verticals; Consumer Durables, Electronics (EMS) and Railway Subsystems & Mobility have recently entered into a Joint Venture Agreement following which its share prices moved up by nearly 4.78 percent on BSE to Rs. 3,380 on Thursday, compared to its previous closing price of Rs. 3,225.55.
With a market cap of Rs. 11,199.8 crore, at 01:42 p.m. the shares of Amber Enterprises India Limited were trading in the green at Rs. 3,324.7, up by nearly 3.17 percent.
The company has delivered a positive return of around 14.8 percent in the last six months, and nearly 80.3 percent in the last one year. So far, it has given around 7.3 percent returns in 2024.
According to the recent filings on the stock exchanges, the definitive agreements have been executed by Amber Enterprises India Limited to acquire a 50% stake in Resojet Private Limited, which is a part of LCGC Resolute Group.
Amber will invest Rs. 35 crore in Resojet to acquire a 50% stake in the JV Company, subject to the completion of the Condition Precedent. Resojet will be controlled equally by Amber and LCGC Resolute Appliances LLP.
The parties have entered into this JV Agreement to manufacture fully automatic top-loading and front-loading washing machine(s) and its components.
This JV will allow both companies to serve the evolving customer needs, deliver high-quality products, and grow the local manufacturing ecosystem in India.
Resojet is engaged in the business of manufacturing, assembling, owning, designing, developing, and engineering fully automatic top-loading and front-loading washing machine(s).
The acquisition of a 50% stake in Resojet’s share capital is expected to be completed on or before 31st May 2024.
In terms of financials, the company’s revenue from operations grew by 39.6% from Rs. 927.06 crores in Q2 FY23-24 to Rs. 1,294.76 crore in Q3 FY23-24.
The net profit of the company is Rs. -0.51 crore in Q3 FY23-24, a growth of 90.97 percent on a quarter-on-quarter basis from a loss of Rs. 5.65 crore in Q2 FY23-24
As of December 2023, FIIs hold 28.29 percent of the shares, whereas DIIs
hold 14.67 percent of the shares in the company, aggregating to 42.96 percent of the institutional holdings.
Established in 1990, Amber Enterprises India Limited is the market leader in the Indian Room Air Conditioner (RAC) industry, with a presence across both, the components space and finished goods, in the HVAC industry.
Written by Shivani Singh
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