- From Assembling Electronics to Manufacturing Their Backbone
- Is This Expansion Improving Its Financial Performance?
- The Other Side of Expansion: Rising Debt
- Why Is IL JIN Using IPO Money to Repay Debt?
- What Should Investors Watch?
- The Takeaway
Amber Enterprises' subsidiary, IL JIN Electronics, has filed its DRHP with SEBI for a proposed ₹2,500 crore IPO. The issue will comprise an entirely fresh issue of shares, with no offer for sale (OFS) component.
But there is more to this IPO than a growing electronics manufacturing business. IL JIN has expanded beyond assembling electronic products into manufacturing the printed circuit boards (PCBs) used inside them. However, this expansion has also increased its borrowing requirements. Now, a large part of its IPO proceeds is earmarked for repaying debt.
The key question for investors is whether this expansion can translate into sustainable growth and profitability.
From Assembling Electronics to Manufacturing Their Backbone
Think of a smartphone or a television. The different electronic components inside these products need a board that connects them and allows them to work together. This board is called a printed circuit board (PCB).
While many electronics manufacturers focus on assembling products using ready-made components, manufacturing bare PCBs requires specialised technology, equipment and investment.
IL JIN initially focused on electronics manufacturing services (EMS), which includes PCB assembly and box-build solutions. However, it gradually expanded into bare PCB manufacturing by acquiring Ascent Circuits and Shogini Technoarts.
These acquisitions helped IL JIN build capabilities beyond assembly. It now operates across four business segments: EMS, bare PCB manufacturing, power electronics, and industrial automation.
According to the company's industry disclosures, India imported approximately 85.5% of its bare PCB requirements in FY26. IL JIN claims to be India's largest bare PCB manufacturer by revenue, with an estimated 21% share of the domestic market.
This gives the company an opportunity to benefit from India's efforts to build more electronics manufacturing capabilities domestically.
Is This Expansion Improving Its Financial Performance?
IL JIN's financial performance has improved alongside its expansion. Its revenue increased from ₹1,240.41 crore in FY24 to ₹3,268.47 crore in FY26. Its EBITDA also grew from ₹71.42 crore to ₹321.07 crore during the same period.
More importantly, its business mix has changed. In FY24, EMS contributed 96.03% of revenue, while bare PCBs accounted for just 3.47%. By Q1 FY27, the contribution of EMS had fallen to 53.99%, while bare PCBs had increased to 25.60%. Industrial automation and power electronics contributed 12.73% and 7.06%, respectively.
Its EBITDA margin also improved from 5.76% in FY24 to 9.82% in FY26 and 13.40% in Q1 FY27. Net profit increased from ₹21.52 crore in FY24 to ₹128.16 crore in FY26.
The changing business mix and improving margins are encouraging. However, investors should not assume that PCB manufacturing alone caused this improvement. The contribution of acquisitions, operating efficiencies and individual business segments also needs to be examined.
Investors can use a structured IPO analysis framework to evaluate these financial numbers alongside the company's growth, risks and valuation.
The Other Side of Expansion: Rising Debt
Building new manufacturing capabilities and acquiring companies requires money. IL JIN has relied partly on borrowings to fund this expansion.
Its total borrowings increased from ₹457.67 crore in FY24 to ₹1,107.09 crore by June 30, 2026. Finance costs also increased from ₹18.65 crore in FY24 to ₹48.98 crore in FY26.
This brings us to one of the most important details of the proposed IPO.
Why Is IL JIN Using IPO Money to Repay Debt?
The proposed ₹2,500 crore IPO is entirely a fresh issue. This means the money raised will go to IL JIN rather than existing shareholders selling their shares. Understanding the difference between a fresh issue and an OFS is important when evaluating the different types of IPOs.
According to the DRHP, the company plans to use the net proceeds as follows:
- ₹1,636 crore: Repayment or prepayment of borrowings, including those of Ascent Circuits and Shogini Technoarts (subsidiaries).
- ₹189 crore: Purchase of plant, machinery and equipment.
- Remaining proceeds: General corporate purposes.
The proposed debt repayment is a major part of the issue's objectives.
It also explains the financial trade-off behind IL JIN's expansion. The company has acquired businesses and invested in new manufacturing capabilities, but these investments have increased its debt.
Repaying borrowings could reduce future interest expenses and ease pressure on cash flows. However, the actual benefit will depend on how much debt is repaid, the interest rates on those loans and the company's future borrowing requirements.
Investors can examine the company's proposed fund utilisation and other important disclosures by learning how to read a DRHP.
What Should Investors Watch?
Despite its improving financial performance, IL JIN faces three important challenges.
1. Acquired growth versus organic growth: Acquisitions have helped the company enter new businesses quickly. However, investors need to examine whether existing operations are also growing and whether the acquired businesses can be integrated successfully.
2. Execution of expansion plans: Advanced PCB manufacturing requires specialised technology, substantial investment and customer approvals. Building capacity is only the first step. IL JIN must also attract orders, increase capacity utilisation and earn adequate returns on its investments.
3. Customer concentration: Electronics manufacturers often depend on a limited number of large customers. Any loss of a major customer or slowdown in its end-user industries could affect revenue and factory utilisation. The latest customer-concentration figures therefore deserve close attention.
The Takeaway
IL JIN Electronics is gradually moving beyond basic electronics assembly by expanding into bare PCBs, power electronics and industrial automation. Its revenue, EBITDA and margins have improved alongside this expansion.
However, the growth has also required substantial borrowing. The proposed IPO is therefore important not just for raising money, but also for reducing the financial burden created by earlier expansion.
The investment case will ultimately depend on whether IL JIN can turn its expanded manufacturing capabilities into sustainable profits and cash flows while keeping debt under control.
For investors, the important question is not just how fast IL JIN is growing, but how efficiently it can convert that growth into returns.