Dixon Technologies (India) Limited, a prominent player in the electronics manufacturing services sector, has announced the formation of a new wholly owned subsidiary, Dixon Electrocorp Private Limited. This strategic move, disclosed in a regulatory filing, marks a significant step in Dixon Technologies' corporate structure expansion.

Key Details of the New Subsidiary

Dixon Electrocorp Private Limited was incorporated on August 29, as revealed in the company's disclosure to the stock exchanges. The subsidiary's primary focus will be on manufacturing and dealing in a wide range of electronic products, with a particular emphasis on battery technology.

Scope of Operations

According to the regulatory filing, Dixon Electrocorp's objectives include:

• Manufacturing and dealing in various electronic products
• Specializing in batteries, particularly lithium-ion (Li-ion) batteries
• Producing Li-ion battery cells for digital applications
• Developing battery packs and modules
• Creating related products, equipment, and components

Financial Aspects

Dixon Technologies has made an initial investment of Rs. 1,00,000 in the new subsidiary, subscribing to 10,000 equity shares at a face value of Rs. 10 each. This investment secures Dixon Technologies' 100% shareholding in Dixon Electrocorp.

Strategic Implications

The establishment of Dixon Electrocorp aligns with Dixon Technologies' broader strategy to expand its manufacturing capabilities and diversify its product portfolio. By venturing into specialized battery technology, the company is positioning itself to capitalize on the growing demand for advanced energy storage solutions in various electronic applications.

Regulatory Compliance

In line with regulatory requirements, Dixon Technologies has informed the BSE Limited and the National Stock Exchange of India Limited about this development. The company has also disclosed that the necessary subscription money for the wholly owned subsidiary was paid on September 29.

Looking Ahead

While Dixon Electrocorp is yet to commence its business operations, its formation signals Dixon Technologies' intent to strengthen its presence in the evolving electronics manufacturing landscape. The move into battery technology, particularly Li-ion batteries, could open up new avenues for growth and innovation for the company.

As Dixon Technologies continues to expand its corporate structure, investors and industry observers will be keenly watching how this new subsidiary contributes to the company's overall growth strategy in the coming years.

Dixon Technologies , a leading electronic manufacturing services company, has successfully completed the acquisition of a majority stake in Kunshan Q Tech Microelectronics (India) Private Limited. The transaction, valued at INR 5,529.99 crore, marks a significant move in the Indian electronics manufacturing sector.

Transaction Details

The acquisition was executed through a combination of share purchase and subscription:

• Share Purchase: Dixon acquired 16,150,943 equity shares for INR 4,279.99 crore
• Share Subscription: The company subscribed to 4,716,981 new equity shares for INR 1,249.99 crore

In total, Dixon Technologies now owns 20,867,924 equity shares of INR 10 each in Kunshan Q Tech Microelectronics, representing a 51% ownership stake. Q Technology (Singapore) Private Limited retains the remaining 49% shareholding.

Shareholder Agreement

As part of the deal, the parties have executed a shareholders agreement to govern the management and inter-shareholder rights of the company. Key points of the agreement include:

• Both Dixon Technologies and Q Technology (Singapore) have the right to nominate two directors each to the board, provided they maintain at least a 28% shareholding
• If either party's shareholding falls below 28% but remains above 14%, they retain the right to nominate one director
• The agreement includes customary information rights and provisions for reserved matters requiring shareholder approval

Closing and Regulatory Compliance

The closing formalities for this transaction were completed on September 26. Dixon Technologies has duly informed the stock exchanges about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Market Implications

This strategic acquisition positions Dixon Technologies to strengthen its presence in the microelectronics segment, potentially enhancing its capabilities in the rapidly growing Indian electronics manufacturing industry. The move aligns with the government's push for increased domestic manufacturing under initiatives like 'Make in India' and 'Atmanirbhar Bharat'.

As the electronics manufacturing landscape in India continues to evolve, this acquisition may have significant implications for the sector's competitiveness and growth prospects. Investors and industry observers will be keenly watching how Dixon Technologies leverages this new partnership to drive innovation and expand its market presence.