Amber Enterprises India Limited announced that its material subsidiary, IL JIN Electronics (India) Private Limited, has executed Definitive Transaction Agreements to acquire a 19.92% equity stake in MoMagic Wireless Private Limited. The total purchase consideration for the transaction is Rs. 25 Crore, payable in tranches, aiming to strategically position IL JIN in the rapidly growing Internet of Things (IoT) domain. The transaction closes via two stages, with the first closing expected within 30 days of execution.
Acquisition of Strategic IoT Stake
Amber Enterprises India Limited has disclosed that its material subsidiary, IL JIN Electronics (India) Private Limited (“IL JIN”), has entered into Definitive Transaction Agreements to acquire a minority stake in MoMagic Wireless Private Limited (“MoMagic”). This transaction represents a strategic move for IL JIN into the Internet of Things (IoT) ecosystem.
Transaction Details and Consideration
Under the Share Subscription Agreement, IL JIN will subscribe to 51,52,938 equity shares of MoMagic, resulting in a total shareholding of 19.92% of MoMagic’s equity capital. The total cost for this acquisition is fixed at Rs. 25 Crore, structured to be paid across one or more tranches.
Closing Schedule
- 1st Closing: Within 30 days from the date of execution, subscribing to 41,22,351 Equity Shares (representing 16.60%).
- 2nd Closing: On or before 30th June 2026, subscribing to the remaining 10,30,587 Equity Shares (representing 3.32%).
The consideration breakdown is Rs. 20 Crore for the first closing and Rs. 5 Crore for the second closing date.
Strategic Rationale and Impact
The primary rationale behind this acquisition is to align with IL JIN’s objective of entering the rapidly growing IoT domain and to enhance its specialized expertise in module design and development. IL JIN expects to gain access to specialized knowledge and innovative technologies, strengthening its competitive position and fostering synergies in research and product innovation.
Target Entity Profile (MoMagic)
MoMagic Wireless Private Limited, incorporated on March 7, 2025, is engaged in designing, developing, and supplying wireless Communication Modules, including Cellular, BLE, and Wi-Fi. The company’s turnover as of March 31, 2025, was reported as Nil, reflecting its nascent stage of operations.
Capital Structure of MoMagic
- Authorized Share Capital: Rs. 25,00,00,000/-
- Paid-up Share Capital: Rs. 1,00,000/-
Governance Rights
The Definitive Transaction Agreements grant significant rights to IL JIN. The Board of Directors of MoMagic will consist of up to Five members. IL JIN has the right to nominate and maintain one Non-Executive Director, provided it meets specified shareholding thresholds. Furthermore, IL JIN will have the right to nominate one Observer to the Board.
The remaining four directors, termed “Founder Directors,” will be jointly appointed by MoMagic Technologies Private Limited, with the mandatory stipulation that Mr. Arun Kumar Gupta be appointed as one of them.
Source: BSE
