Dixon Technologies share price surged as much as 3.5 per cent to ₹16,537 apiece in early morning session on Wednesday after the company announced on Tuesday that it has signed a binding term sheet to acquire a 51 per cent stake in Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India).
Dixon Technologies share price has ascended over 13.67 per cent in a month and over 30 per cent in a year. However, in terms of year-to-date (YTD), the stock has fallen over 9.58 per cent.
Dixon Technologies acquisition details
According to the exchange filing dated July 15, the acquisition will be carried out through a mix of primary and secondary investments.
The deal is intended to strengthen cooperation in the production, marketing, and distribution of camera and fingerprint modules, with applications spanning mobile phones, IoT devices, and the automotive industry.
“Acquiring majority stake in Qtech India is a major step forward in Dixon’s journey foraying into development and production of camera modules and fingerprint recognition modules across mobile handsets, IoT devices and automotive applications thereby strengthening backward integration plans of the Company. The proposed acquisition of a majority stake in Q Tech India aligns with our long-term vision to be a leading enabler in India’s electronics manufacturing ecosystem by combining Q Tech’s technological expertise with Dixon’s manufacturing scale and operational excellence. This collaboration is a testament to our commitment to technological excellence, self-reliance, deepening of component ecosystem and delivering greater value to our global and domestic partners,” said Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies (India).
Q Tech India operates as a subsidiary of Q Technology (Singapore) Private Limited and Kunshan Q Technology International Limited, both of which belong to the Q Tech Group.
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