Dixon Soars 3.5% on Q Tech India Stake Buy

 

Mumbai, July 16, 2025: Dixon Technologies (India) Ltd. witnessed its share price jump 3.5% to ₹16,537 in early trading on Wednesday, fueled by the company's strategic move to acquire a 51% controlling stake in Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India).

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The Deal:

Announced via exchange filing on July 15th, Dixon signed a binding term sheet for the acquisition.

The stake will be acquired through a combination of primary investment (fresh capital into Q Tech India) and secondary investment (buying shares from existing shareholders).

The acquisition targets strengthening Dixon's capabilities in manufacturing and distributing camera modules and fingerprint recognition modules.

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Strategic Rationale:

The move represents a significant step in Dixon's backward integration strategy, entering a critical component segment.

Modules produced will serve mobile phones, IoT devices, and the automotive industry.

Dixon aims to leverage Q Tech's technological expertise alongside its own manufacturing scale and operational excellence.

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Management Insight:
Atul B. Lall, Vice Chairman and Managing Director, Dixon Technologies, stated:

"This proposed acquisition aligns with our long-term vision to be a leading enabler in India’s electronics manufacturing ecosystem... a testament to our commitment to technological excellence, self-reliance, deepening of component ecosystem and delivering greater value."

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Stock Performance Context:

While the stock surged on the news, it's part of a larger trend: Dixon shares have risen over 13.67% in the past month and over 30% in the past year.

However, the stock remains down over 9.58% Year-to-Date (YTD).

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About Q Tech India:
Q Tech India operates as a subsidiary of Q Technology (Singapore) Private Limited and Kunshan Q Technology International Limited, part of the global Q Tech Group.

The acquisition positions Dixon to capture more value within the electronics supply chain and capitalize on the growing demand for advanced modules in key sectors.