Jubilant Ingrevia Ltd, a speciality chemicals manufacturer, which announced in August its plan to acquire a 40% stake in Zettaone Technologies India Pvt Ltd for ₹189 crore, is proposing to increase its shareholding to 51% through its wholly owned subsidiary, Jubilant Advanced Electronics Ltd (JAEL).
Co-founded by Harikrishnan, Sureshkumar, Prabu and Arunkumar, Zettaone is an electronics design and manufacturing platform with integrated capabilities across the electronics and semiconductor industries.
Acquisition to be completed in two tranches
JAEL has executed a Share Subscription and Share Purchase Agreement for the proposed acquisition of the 40% strategic stake in Zettaone, with an option to increase its shareholding to 51% during FY28, subject to the terms and conditions of the agreement.
The acquisition will be completed in two tranches. The first tranche is expected to close by November 2026, while the second is expected to be completed by September 2027.
Entry into electronics manufacturing
The acquisition marks Jubilant Ingrevia’s entry into the rapidly growing Electronics Design and Manufacturing Services (EDMS) sector.
The investment is expected to provide a platform to serve customers across semiconductors, aerospace and defence, automotive and other electronics segments.
Integrated electronics and semiconductor offering
The company expects to combine its established manufacturing expertise and customer-centric capabilities in contract development and manufacturing organisation (CDMO) services with Zettaone’s EDMS capabilities.
This is expected to create an integrated value proposition across the electronics and semiconductor ecosystem, including Jubilant Ingrevia’s growing semiconductor and electronics chemicals business. The company aims to deepen customer engagement across the value chain and create long-term growth opportunities.
Wholly owned subsidiary to lead investment
The board has approved the incorporation of JAEL as a wholly owned subsidiary and an initial capital contribution of up to ₹10 crore.
The amount will be invested in cash through subscription to up to one crore equity shares of ₹10 each at par, representing 100% of the subsidiary’s initial paid-up share capital.
The board has also approved routing the proposed acquisition of the 40% stake in Zettaone through JAEL instead of making the investment directly in Jubilant Ingrevia.