Shares of Dixon Technologies Ltd.are rallying in trade on Friday after the Centre gave its approval to execute a joint venture (JV) agreement with Vivo Mobile India (VMI) on Thursday. The joint venture will engage in original equiment manufacturing (OEM) for smartphones. Dixon Tech holds 51% stake in the JV, as per the filing.
Dixon Tech shares opened 2.95% higher at Rs 13,875 apiece.
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JPMorgan also maintained its ‘Overweight' rating on Dixon and raised its target price to Rs 16,700 from Rs 14,300, implying an upside of nearly 39% from the stock's July 9 closing price of Rs 12,033.
"The share capital of the JV Co will be held in the proportion of 51:49 by the company (Dixon Tech) and VMI, respectively," the filing stated.
The approval ends a 19-month wait for the companies. Dixon had signed an agreement with Vivo in December 2024 to form a joint venture for manufacturing electronic devices, including smartphones. Dixon will hold a 51% stake in the venture, while Vivo will own the remaining 49%.
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