Dixon Technologies signs binding term sheet with Vivo India for proposed electronic devices JV

Dixon Technologies Ltd., shares of which have nearly tripled in value so far in 2024, announced the signing of a binding term sheet with Vivo India for a proposed joint venture.

In an exchange filing on Sunday, December 16, Dixon said that the proposed JV will undertake OEM business of electronic devices, including smartphones.

Dixon will hold 51% stake in the JV company, while Vivo India will hold the rest. The company also clarified that neither company will have a stake in each other.

The JV company will undertake part of Vivo India’s OEM orders of smartphones in India and can also engage in the OEM business of various electronic products of other brands.

This transaction will be subject to execution of such definitive agreements, completion of customary conditions precedent and receipt of applicable regulatory approvals, including those needed under the foreign exchange laws in India.

“We believe that this association will bolster our manufacturing excellence and superior execution abilities and Vivo’s leadership in the Indian business ecosystem. This partnership further strengthens our strong foothold in the android smartphone ecosystem in India,” Dixon Technologies’ Vice Chairman and MD Atul B. Lall was quoted as saying.

Earlier this month, Brokerage firm Nomura maintained its “buy” recommendation on shares of Dixon Technologies with a price target of ₹18,654, which is the highest for the stock on the street.

Nomura wrote in its note that China+1 could result in significant long-term