Dixon Technologies Shares: Electronics contract manufacturer Dixon Technologies and Chinese smartphone maker Vivo are entering into a joint venture that will manufacture smartphones for the smartphone brand as well as others. Dixon will have a majority stake in the joint venture, the company said in an exchange filing Sunday.
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Dixon Technologies Shares Today’s Price
After this announcement of joint venture Company shares Dixon Technologies shares price hit a record high on Monday Dixon Technologies shares opened a gap-up at Rs 18,212 per share against its previous closing price of Rs 17,954.40 apiece. Soon after opening, the stock touched its all-time high of Rs 18,830 per share. During the session so far, it touched an intraday low of Rs 18,111.
As of 12:06 PM, it traded at Rs 18,687.70 per share on the NSE, up 4.08% against the previous close. It share trending on BSE 4.85% of ₹18,825 apiece on At 2.47 pm. Dixon and vivo India announced the execution of a binding term sheet on December 15, 2024, for a proposed joint venture in India for carrying on the business as an original equipment manufacturer (OEM) of electronic devices including smartphones.
About the Venture Said the CEO of Vivo India
Dixon will hold 51% of the share capital and vivo India will hold 49% of the share capital in the proposed joint venture entity. The agreement, which is subject to “an optimum structure and the relevant terms and conditions” to be set out in the definitive agreements, along with regulatory approval, comes as the government has been pushing Chinese companies operating in India to form joint ventures with Indian entities.
The government has also requested that Chinese smartphone brands include Indian equity partners in their local operations and appoint Indian executives to key roles. This comes after these brands were found to be non-compliant with Indian laws, and were involved in tax evasion and foreign exchange violations.
The proposed joint venture will undertake part of Vivo’s OEM orders of smartphones in India, and can also engage in OEM business of various electronic products of other brands. This partnership will effectively complement the current manufacturing operations of Vivo India,” said Jerome Chen, CEO of Vivo India.
The parties will agree on an optimum structure and the relevant terms and conditions to be set out in the definitive agreements, it added.
Vice Chairman said on Dixon Technologies Shares.
This partnership further strengthens our strong foothold in the Android smartphone ecosystem in India. There is immense potential to further build on shared capabilities together in times to come, to deliver sustainable growth for the proposed venture,” said Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies.
About the Company
Dixon Technologies (India) is a homegrown design-focused solutions company engaged in manufacturing products in the consumer durables, lighting, and mobile phones markets in India. Dixon manufactures smartphones for nearly all top brands, including Samsung, Xiaomi, Motorola, Oppo, Transsion, Google, and Nothing. Under the new joint venture, Dixon will now also make smartphones for Vivo. The joint venture can also undertake manufacturing for other brands.
"Dixon Technologies has a PE of 153"
— Anmol Sharma (@financebyanmol) December 16, 2024
At first glance, it seems overvalued?
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Dixon Technologies Shares Price Trend
Dixon Technologies shares price has given decent returns of over 26.5% in one month and over 66% in six months. The shares have delivered multi-bagger returns of nearly 190% year-to-date (YTD), and more than 2,500% in the past five years.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗