Dixon Tech Up Almost 1% Intraday on Reports of Govt Approval Likely to Vivo Joint Venture

June 30, Mumbai: Dixon Technologies (NSE: DIXON) shares were trading at Rs 11,898.00, up Rs 93.00 or 0.79%, on Tuesday’s intraday session on NSE, while the VWAP for the day stood at Rs 11,969.37 as of last checked, after reports emerged that government approval for the proposed joint venture between Dixon and Chinese smartphone brand Vivo is likely coming soon. 

The stock opened Tuesday’s session at Rs 11,894.00, up from Monday’s close at Rs 11,805.00. The stock hit an intraday high of Rs 12,210.00 before falling back down, with the intraday low of the session at Rs 11,800.00. Price discovery for the stock on Tuesday started with a mild upward trend during the early part of the session, picking up significant pace after crossing the Rs 12,000 handle around noon, and trending upward sharply in the minutes following. Gains started to be pared off after the afternoon session began, with the stock moving between Rs 11,800 and Rs 11,900 for most of the latter half of Tuesday’s trading session. 

Order Book 

Dixon Technologies’ order book as of Tuesday’s high showed a buy vs sell quantity ratio of 30.98% vs 69.02%, for a total quantity of 21,264 shares. Bid prices were seen ranging from Rs 11,909.00 to Rs 11,916.00, while ask prices ranged from Rs 11,917.00 to Rs 11,921.00, indicating a healthy two-sided market in the Rs 11,900 to Rs 11,920 range as the stock traded intraday. 

Weekly Chart 

On the weekly chart, Dixon opened near Rs 11,887.00 on June 23rd, rose to a high of about Rs 12,050.00 on June 24th, remained mostly flat near Rs 12,000.00 through June 25th before heading south for the remainder of the week, closing the week on June 29th at around Rs 11,805.00. The weekly order book as of June 29th’s close showed a buy vs sell quantity ratio of 30.71% vs 69.29%, for a total quantity of 21,191 shares. Bid prices ranged from Rs 11,882.00 to Rs 11,887.00, while ask prices ranged from Rs 11,890.00 to Rs 11,894.00.

Dixon Technologies-Vivo JV Likely to Get Approval Soon: Report 

CNBC-Awaaz channel quoted sources as saying that the proposed Dixon Technologies-Vivo joint venture has already been cleared by the Inter-Ministerial Group (IMG), with only the formal approval letter from the government pending.  

Expectations are that once the government issues the approval letter, Dixon Technologies and Vivo will be able to proceed with their joint venture operations in India under the electronics manufacturing sector. This comes as the Indian government has continued to place stricter scrutiny and pushed for higher Indian ownership in Chinese-linked businesses operating in India. 

Chinese-linked FDI proposals for manufacturing facilities have been reviewed for longer than usual under this new policy in electronics, smartphone assembly, and other sectors. 

The Indian government’s push comes as Dixon Technologies has already emerged as one of the largest contract manufacturers for electronics and mobile phones in the country, with the brand supplying to several companies under India’s Production Linked Incentive (PLI) scheme. 

If approved, Dixon’s joint venture with Vivo will further push the company’s expansion into smartphone manufacturing, and help strengthen India’s electronics manufacturing ecosystem as the country furthers its Make in India policy. 

Source

•  https://www.nseindia.com/get-quote/equity/DIXON/Dixon-Technologies-India-Limited