Electronic manufacturing services major Dixon Technologies (India) on Friday said it has issued a continuing and irrevocable corporate guarantee of USD 220 million (about Rs 2,101 crore) on behalf of its subsidiary, Padget Electronics, in favour of Lenovo Ireland International Ltd.
The guarantee aims to ensure that Padget Electronics discharges all its payment obligations towards Lenovo Ireland for the purchase of raw materials, parts, and components required for manufacturing its products, the company said in a regulatory filing.
"Dixon has agreed to provide a continuing and irrevocable Corporate Guarantee to Lenovo Ireland International Limited... for and on behalf of Padget up to an aggregate limit of USD 220,000,000," the filing stated.
Padget Electronics is an unlisted material wholly owned subsidiary of Dixon Technologies.
There is no immediate impact on Dixon, though the guarantee will be reflected as a contingent liability in the company's books.
In December 2023, Padget was awarded a manufacturing contract by Lenovo for manufacturing of IT hardware products, i.e., laptops and notebooks, under the Production Linked Incentive 2.0 Scheme.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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