Dixon Technologies shares jump 4% on deal to acquire majority stake in Q Tech India

Shares of Dixon Technologies (India) rose nearly 4% in early trade on Wednesday after the company announced a deal to acquire a 51% stake in Kunshan Q Tech Microelectronics (India) Private Limited (Q Tech India). The acquisition will be executed through a mix of primary and secondary investments. However, Dixon has not disclosed the financial terms of the transaction.

Tracking the news, Dixon Technologies shares opened 3.5% higher at ₹16,377.95 on the BSE, while it gained as much as 3.85% to ₹16,428 in the early trade. At the time of reporting, Dixon shares were up 3.4% higher at ₹16,358.15, with a market capitalisation of ₹98,940 crore.

At the current level, Dixon shares are down 14.5% from its 52-week high of ₹19,149.80 touched on December 17, 2024, while it has rebounded strongly by 54% from its 52-week low of ₹10,613 hit on July 23, 2024.  The largecap stock has delivered a negative return of 9% on year-to-date (YTD) basis, while it has risen over 14% in the past one month.

In an exchange filing last evening, Dixon said that it has signed a binding term sheet with Kunshan Q Tech Microelectronics India (Q Tech India), Q Technology Singapore, and Kunshan Q Technology International - collectively known as the Q Tech Group - for the proposed acquisition of a 51% stake in Q Tech India.

Q Tech India is a subsidiary of Q Technology Singapore and Kunshan Q Technology International. It is a technology company and offers a range of services, including IT support, cybersecurity, home automation, and web development.

The collaboration aims to jointly manufacture, sell, and distribute camera and fingerprint modules for mobile handsets, Internet of Things (IoT) systems, and automotive applications.

“The proposed acquisition will be consummated through a combination of primary and secondary investment by Dixon, and is subject to signing of definitive agreements, receipt of regulatory approvals, applicable if any, and completion of customary conditions precedent,” it said in a BSE filing.

As per the company, the acquisition will help Dixon enhance its capabilities in critical components by gaining access to advanced technology, high-precision manufacturing, and a skilled talent pool. The move also aligns with its broader strategy to expand into new markets and contribute significantly to India’s evolving component ecosystem.

“Acquiring majority stake in Q Tech India is a major step forward in Dixon’s journey foraying into development and production of camera modules and fingerprint recognition modules across mobile handsets, IoT devices and automotive applications thereby strengthening backward integration plans of the Company,” said Atul B. Lall, Vice Chairman and Managing Director of Dixon Technologies (India).

He said that the proposed acquisition of a majority stake in Q Tech India aligns with the company’s long-term vision to be a leading enabler in India’s electronics manufacturing ecosystem by combining Q Tech’s technological expertise with Dixon’s manufacturing scale and operational excellence.

“We are confident that this strategic alliance will unlock significant synergies, accelerate technology transfer, and enable faster go-to-market solutions. It represents not just a business opportunity, but a shared vision for innovation, quality, and long-term growth,” he added.

Dixon to form JV with Chongqing Yuhai

In a separate development, Dixon has entered into a binding term sheet with Chongqing Yuhai Precision Manufacturing Co. to establish a joint venture in India, subject to the receipt of necessary statutory approvals and the execution of definitive agreements.

As per the proposed structure, Dixon will hold 74% of the total paid-up share capital of the joint venture company, while Chongqing will hold the remaining 26%.

The joint venture will engage in the manufacturing and supply of precision components for laptops, mobile phones, Internet of Things (IoT) devices, automotive applications, and other products as mutually agreed by both parties.

This partnership is aimed at strengthening India’s electronics manufacturing ecosystem by leveraging Chongqing's expertise in precision engineering and Dixon’s established domestic manufacturing capabilities, Dixon said in a release.

“This will mark a significant step forward in our continued journey to strengthen India’s electronics manufacturing ecosystem through high-precision components and advanced technologies. We look forward to mutually enrich this relationship that creates long-term value for our customers and stakeholders," said MD of Dixon.

The board of directors of Dixon is scheduled to meet on July 22 to consider and approve financial results of the company for the quarter ended June 2025.

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