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ADV Partners-backed Amber Enterprises buys into Pune electronics firm

09 March, 2018

Amber Enterprises India Ltd, which makes air-conditioners for companies such as Whirpool and Daikin, has agreed to acquire a 70% stake in Pune-based Ever Electronics Pvt. Ltd.

The company will buy shares of Ever Electronics at a price of Rs 54.799 apiece, Amber said in a stock-exchange filing. That translates to around Rs 21 crore ($3.2 million).

Amber, backed by Hong Kong-based private equity firm ADV Partners, said the all-cash transaction is likely to be completed by the end of June.

This is Amber’s second acquisition in December, when it had bought IL JIN Electronics (India) Pvt. Ltd. Ever Electronics is indirectly owned by the erstwhile promoter of IL JIN.

Both Ever Electronics and IL Jin make components such as printed circuit boards for air-conditioners and home appliances.

Amber said the two deals will enhance its backward integration capabilities and help it offer more integrated solutions for inverter air conditioners.

Ever Electronics posted revenue of Rs 141.5 crore for the financial year 2016-17, up from Rs 117.8 crore the year before, Amber said. It didn’t disclose the target company’s net profit or loss.

Amber Enterprises was founded in 1994 in Punjab. It has 10 manufacturing units across seven locations, of which six are operational. The company was set up by Kartar Singh and is now managed by his sons Jasbir and Daljit.

Apart from air conditioners, the company makes microwave ovens, components for refrigerators and other consumer durable products for clients such as Videocon, John Deere, Swaraj Mazda, Godrej, Blue Star, Philips and Voltas.

In January, the company floated a highly successful initial public offering. The Rs 600 crore share sale was subscribed 165 times.

Ahead of the IPO, the company raised Rs 178.71 crore ($28 million) by selling shares to a bunch of anchor investors, including the sovereign wealth funds of Abu Dhabi and Kuwait.

It also made a strong stock market debut, with its shares ending 44% higher than its IPO price of Rs 859 on the listing day. The shares have pared the gains since then and closed at Rs 1,104.35 on Friday on the BSE.

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ADV Partners-backed Amber Enterprises buys into Pune electronics firm

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