Shares of Dixon Technologies touched a day’s high of Rs 12,210 on 30 June, on reports of its Vivo JV close to final approval.

The stock opened at Rs 11,894, slightly higher than its previous close of Rs 11,805, and stayed volatile through the day before settling with gains.

According to sources familiar with the matter, the central government is in the final stages of clearing the Dixon-Vivo joint venture, and a formal approval letter is expected soon.

The proposal had already cleared the inter-ministerial panel earlier this month, which was seen as a key step in the approval process.

Dixon’s founder and chairman Sunil Vachani had earlier told media that the company was confident of getting the nod soon, describing it as ‘just around the corner’.

He had said the JV could manufacture around 12 to 15 million smartphones in the current financial year alone once it becomes operational.

Vivo is currently India’s largest smartphone brand by shipments, selling close to 35 million units a year in the country.

Under the proposed 51:49 joint venture structure, around two thirds of Vivo’s India volumes are expected to be manufactured through this tie up, translating into an annual production potential of 20 to 22 million units.

Dixon Technologies has also been expanding beyond mobile phones into segments like telecom equipment, lighting and specialised electronics manufacturing for aerospace, defence and medical devices.

Shares of the Noida based electronics manufacturer closed at Rs 11,911 on the NSE on 30 June, up 0.90% for the day.

The stock remains within its 52 week range of Rs 9,600 to Rs 18,471, and has gained over 3% in the past month.

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