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Dixon Stocks Surge on Vivo JV Approval Rumors
17 Jun
Summary
- Dixon Technologies shares jumped over 5% on acquisition rumors.
- Government likely to approve Dixon's joint venture with Vivo.
- Dixon will hold a 51% majority stake in the new JV.
Shares of Dixon Technologies saw a notable increase of over 5% on Wednesday, trading at ₹12,770 as of 10 AM. This rally was reportedly triggered by anticipated government approval for its long-pending joint venture with Chinese smartphone manufacturer Vivo.
The proposed joint venture, established in December 2024, positions Dixon Technologies as the majority shareholder with a 51% stake. The JV is expected to concentrate on the manufacturing of electronic devices, with smartphones being a primary focus.
Reports suggest an inter-ministerial panel has granted in-principle approval, with further clearance expected from Meity. Vivo's existing manufacturing facility in Noida may become part of this collaborative venture, strengthening its operational capacity in India.
Despite this recent surge, Dixon Technologies has underperformed the benchmark indices over the past year, with its stock declining 11%. Analysts observe a strong bullish momentum, supported by healthy volume expansion and positive technical indicators, suggesting potential for further gains if key support levels are maintained.
