Shares of Dixon Technologies Ltd rallied as much as 3.43% in trade on Tuesday after the proposed joint venture between Dixon and Vivo is moving closer to receiving the government's final approval, with the Centre in the final stages of issuing the approval letter, sources told NDTV Profit.
The development comes after the proposed JV was cleared by an inter-ministerial panel earlier this month, marking another step towards formalising the partnership.
The approval is expected to be significant for Dixon Technologies. According to the company's management in an earlier interaction, the venture could add 20-22 million smartphone units to annual production and create a Rs 30,000 crore revenue opportunity over time. The JV is also expected to account for nearly 67% of Vivo's manufacturing in India.
Speaking to NDTV Profit in May, Saurabh Gupta, Executive Director and Group CFO of Dixon Technologies, acknowledged that the approval process had taken longer than anticipated but said there were no structural hurdles delaying the transaction.
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