Shares of Dixon Technologies rallied over 9% to touch a fresh all-time high in intraday trade on Friday after its subsidiary began production of Xiaomi smartphones at its new Noida factory. Padget Electronics, a wholly owned subsidiary of Dixon, inaugurated a new smartphone manufacturing plant in the Noida district, Uttar Pradesh, today, the company says in an exchange filing.

Reacting to the news, Dixon Tech shares gained as much as 9.5% to hit a new record high of ₹6,034.75 in intraday trade today. The stock finally settled the day’s trade at ₹5,950, up 8% on the BSE. The market capitalisation surged to ₹35,580 crore, with 0.77 lakh shares changing hands over the counter as compared to two-week average volume of 0.14 lakh stock.

Dixon Tech shares have maintained an uptrend for the last four sessions and gained nearly 13% during the same period. From its 52-week low of ₹2,555 on January 30, 2023, the stock has risen 136% in the last ten months to touch a new record high of ₹6,034.75 intraday today.

The largecap stock has given 36% in the last one year, while it jumped 53% in the calendar year 2023. In the last six months, the stock surged 50%, whereas it added nearly 12% in a month.

In an exchange filing today, Dixon says that Padget’s Noida facility has commenced the production of smartphones for Chinese technology firm, Xiaomi India. “The latest manufacturing facility by Padget Electronics, which is the smartphone manufacturing subsidiary of Dixon Technologies, has commenced the production of smartphones for global technology giant - Xiaomi India in Q3, 2023,” the release notes.

The Noida facility is build across 2.7 lakh square feet and at an annual capacity of 25 million units, the new manufacturing plant represents a significant stride in India's efforts to bolster its footprint in local smartphone manufacturing, the release says.

Sunil Vachani, executive chairman at Dixon Technologies says, “We are delighted about the new state of the art manufacturing facility, quality processes and efficient production lines. It’s a momentous step towards our commitment of boosting local smartphone manufacturing system in India. We believe that this association will leverage our excellence and superior execution and Xiaomi’s expertise & leadership in Indian business ecosystem.”

"This is a significant step forward in our journey of boosting the local smartphone manufacturing ecosystem in India and building a strong, world-class technology ecosystem. We have a 5-year long association with Xiaomi India, and are excited to start this new chapter that exemplifies synergy between our two organizations,” says Atul Lall, Vice Chairman & Managing Director, Dixon Technologies.

Dixon's expanded collaboration with Xiaomi India is emblematic of the burgeoning potential within the Indian electronics manufacturing landscape, the release highlights.

In September this year, Padget signed a deal with Chinese smartphone manufacturer Xiaomi for the manufacturing of smartphones and other related products at the Noida facility. Xiaomi is one of the world’s leading smartphone companies, selling products in more than 100 countries and regions around the world. In August 2023, Xiaomi was included in the Fortune Global 500 list for the fifth year in a row, ranking 360th.

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