Heavy Buying: Small-Cap Electronics Company Rallies Over 10 Per cent, Hits 52-Week High - Recently Formed JV with Korea Circuit to Manufacture World-Class HDI, Flex, and Semiconductor Substrate PCBs

Rakesh Deshmukh
Heavy Buying: Small-Cap Electronics Company Rallies Over 10 Per cent, Hits 52-Week High - Recently Formed JV with Korea Circuit to Manufacture World-Class HDI, Flex, and Semiconductor Substrate PCBs

The company’s shares have delivered an impressive return around 100 per cent to its shareholders in the past 1 year.

Today, the shares of Amber Enterprises a Small-Cap electronics company rallied over 10 per cent on the first day of the week, hitting a 52-week high with a volume surge of over 5.5 times on the BSE.

JV with Korea Circuit

Recently, Amber Group, in collaboration with Korea Circuit, a leader in the Korean PCB industry, announced a strategic joint venture (JV) aimed at manufacturing printed circuit boards (PCBs) in India. This partnership focuses on the advanced manufacturing of high-density interconnect (HDI), flexible (Flex), and semiconductor substrate PCBs, marking a significant step towards enhancing domestic capabilities in electronics production.

Under this JV, the Amber Group, through its subsidiary IL JIN Electronics, will hold a 70 per cent stake, while Korea Circuit will retain 30 per cent. This initiative aligns with the Indian government's ‘Aatmanirbhar Bharat’ vision, promoting domestic value addition and capabilities for import substitution in the electronics sector. The partners plan to commence the search for land to establish a state-of-the-art manufacturing facility, pending the finalization of the Government’s Electronics Components Manufacturing Scheme.

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Management Commentary

Mr. Jasbir Singh, Executive Chairman and CEO of Amber Group, emphasized the JV's potential to leverage Korea Circuit's 40 years of PCB production expertise, which will enhance their competitive advantage and facilitate connections with global customers. The collaboration aims to expand Amber Group's offerings into new segments, including mobile, module, and semiconductor industries.

Mr. Se Joon Chang, CEO of Korea Circuit, highlighted that this venture will enable them to tap into the burgeoning Indian market while establishing a reliable local supply chain. With this joint venture, both companies aim to meet the rapidly growing demand for electronic components in India and strengthen their positions in the industry.

Share Performance

Currently, the shares of Amber Enterprises India Ltd are trading at around Rs 6039 and the current market capitalization stands at Rs 20,389 crore. Additionally, the shares have delivered an impressive return of around 95 per cent in the past 1 year.

Disclaimer: The article is for informational purposes only and not investment advice.

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