Dixon Technologies Completes ₹553 Crore Acquisition of 51% Stake in Q Tech India; Stock Slumps 4%

New Delhi, September 29, 2025 – Dixon Technologies (India) Ltd (NSE: DIXON, BSE: 540699) shares tumbled 4.43% to ₹16,735 in early trade today. The surge was noted immediately after the company announced the completion of its ₹552.99 crore acquisition of Kunshan Q Tech Microelectronics (India) Pvt Ltd (“Q Tech India”).

Transaction Highlights

On September 26, 2025, Dixon entered into a share subscription and purchase agreement to acquire a controlling 51% stake in Q Tech India. The transaction comprised two components: a share purchase of 1,61,50,943 equity shares for ₹427.99 crore and a share subscription of 47,16,981 shares for ₹125 crore.

Collectively, Dixon has purchased 2.08 crores shares for an overall cost of ₹552.99 crores. As a result of this transaction, Dixon and its nominees now have a 51% controlling stake in Q Tech India, while Q Technology (Singapore) retains a 49% stake.

Shareholders’ Agreement

On September 26, 2025, Dixon, Q Tech India, and Q Technology (Singapore) entered into a shareholders’ agreement. The shareholders’ agreement discusses representation on the board, providing that each party is entitled to nominate two directors as long as it owns a minimum of 28% of the equity in the Companies and can nominate one director if the ownership stake is reduced to 14%.

It also provides customary rights relating to financial and operational matters, along with reserved issues such as approval processes, indemnities, and dispute resolution mechanisms. The company clarified that this transaction does not qualify as a related party arrangement.

Stock Performance

Dixon’s stock closed at ₹16,679, down ₹832.00 (4.75%) from its previous close of ₹17511. The share opened at 17,530 and the day’s range stood at ₹16,626-₹17,637, against 52 weeks of ₹12,202–₹19,148. With a market cap of ₹1,01,179 crore, the decline likely reflects near-term profit booking despite the acquisition.

Dixon Technologies (India) Limited, listed since 2017, is a leading contract manufacturer in the consumer electronics sector. It operates across product verticals, including lighting, home appliances, mobile phones, and security devices, and is part of the NIFTY Midcap 50 index.

REF: https://nsearchives.nseindia.com/corporate/DIXON_26092025171622_AnnouncementSHA26092025.pdf

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