Dixon Tech Shares In Focus After Rs 553-Crore Acquisition To Boost Mobile Manufacturing
Dixon Tech has entered into a share subscription and purchase agreement with Kunshan Q Tech's promoters to acquire a 51% equity stake.
Dixon Technologies (India) Ltd. will acquire Delhi-based Kunshan Q Tech Microelectronics (India) Pvt. Ltd. for Rs 553 crore to boost its mobile manufacturing capabilities.
The company has entered into a share subscription and purchase agreement with Kunshan Q Tech's promoters to acquire a 51% equity stake on a fully diluted basis, according to an exchange filing on Wednesday. The deal was announced in July.
Kunshan Q Tech Microelectronics is involved in the manufacturing, sale, and distribution of camera and fingerprint modules for mobile handsets, Internet of Things systems, and automotive applications. Its turnover for the financial year 2025 was Rs 1,977 crore.
The company will become a joint venture of Dixon Tech and Q Tech Singapore upon closing of the proposed transaction. Q Tech Singapore will own 49% of Kunshan Q Tech Microelectronics.
"The proposed acquisition will further enhance DTIL's manufacturing excellence and execution capabilities in mobile handsets, IoT devices and automotive applications, thereby strengthening the company's backward integration plans," Dixon Tech said.
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Growing Footprint
Dixon Tech is one of the largest electronic manufacturing services (EMS) providers in India. It provides manufacturing and design-focused solutions in home appliances, lighting, mobile phones, set-top boxes, and wearables.
The Noida-based company has been increasingly looking to enter into high-margin segments like EVs, defence, drones, medical electronics, and telecom infrastructure.
In July, the company received approval from the Indian government to set up a joint venture with China's Longcheer Intelligence Pte. Ltd. Under the proposed JV, 74% of the stake will be owned by Dixon Tech, whereas the remainder 26% will be held by Longcheer.
The JV company will manufacture and supply smartphones, tablets, true wireless stereo, smart watch, AI PC, automotive electronics, and healthcare devices.
Shares of Dixon Tech closed flat at Rs 18,100.8 apiece on the BSE on Wednesday, ahead of the announcement, compared to a 0.4% rise in the benchmark Sensex. The stock has risen 29% in the last 12 months and 0.5% so far this year.
