Shares of Dixon Technologies (India) Ltd. surged 4%, reaching a day’s high of Rs 18,830 on 16th December, after the company announced the signing of a binding term sheet with Vivo India for a proposed joint venture.

In an exchange filing on Sunday, Dixon Technologies announced that the proposed joint venture (JV) with Vivo India will focus on the OEM business of electronic devices, including smartphones.

Dixon will hold a 51% stake in the JV company, while Vivo India will own the remaining 49%. The companies clarified that neither will have a stake in the other.

The JV will handle some of Vivo India’s OEM smartphone orders in India and may also engage in the OEM business for other brands’ electronic products.

The transaction is subject to signing definitive agreements, fulfilling customary conditions precedent, and obtaining necessary regulatory approvals, including those under India’s foreign exchange laws.

Dixon’s Vice Chairman and MD, Atul B. Lall, expressed optimism about the partnership, highlighting its potential to enhance Dixon’s manufacturing and execution capabilities while leveraging Vivo’s leadership in the Indian business ecosystem. He noted that this partnership strengthens Dixon’s position in India’s Android smartphone ecosystem.

So far, in 2024, the stock has yielded astounding returns of 190%.

At 12:29 PM, the shares of Dixon Technologies were trading 4.27% higher at Rs 18,721 on NSE.

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