Amber Enterprises To Acquire 50% Stake in Resojet Pvt. Ltd

On Thursday, March 21, 2024, Amber Enterprises stated in an exchange filing that the company had executed definitive agreements to acquire a 50% stake in Resojet Private Limited, which is a part of LCGC Resolute Group, Hyderabad.

Details of the Acquisition

Amber Enterprises, a prominent solution provider for the HVAC (Heating, ventilation, and air conditioning) Industry in India, announced that the company executed definitive agreements to acquire a 50% stake in a Joint Venture (JV), Resojet Private Limited. This is to engage in the business of manufacturing fully automatic front-loading and top-loading washing machines and their components.

The company also stated in an exchange filing, “Pursuant to the definitive agreements, Joint Venture Company will be equally owned and controlled by both Joint Venture Partners.”

Amber Enterprises and LCGC Resolute Appliances LLP will have equal control in Resojet Private Limited. Both the parties have entered into an investment cum joint venture agreement to enter into a 50:50 joint venture.

Resojet Private Limited is involved in the manufacturing, owning, assembling, designing, engineering, and developing fully automatic front-loading and top-loading washing machines. Amber Enterprises is involved in the manufacturing of consumer durable goods like air conditioners and more.

The authorised share capital is ₹1,00,000 (10,000 equity shares of a face value of ₹10 each), and the paid-up share capital is ₹1,00,000 (10,000 equity shares of a face value of ₹10 each).

They further stated that this Joint Venture will help both companies cater to evolving customer needs, deliver high-quality products, and develop the local manufacturing ecosystem in India. Also, the transaction will be done at an ‘arm’s length’ basis.

As per the stock exchange filing, Amber Enterprises will invest ₹35 crore in Resojet Private Limited to acquire a 50% stake in the Joint Venture company. This is subject to the completion of Condition Precedent as per the definitive agreements. The acquisition of a 50% stake in the share capital of Resojet Private Limited is expected to be completed on or before 31 May 2024.

On March 21, 2024, the share price of Amber Enterprises India Ltd opened at ₹3,270.00, touching the day’s high at ₹3,425.65, as of 3:09 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.