Dixon Technologies to Acquire Majority Stake in Ismartu

On April 8, 2024, Dixon Technologies (India) Limited informed in a stock exchange filing that the company had entered into a Share Purchase Agreement and Shareholders’ Agreement for the proposed acquisition of a majority stake in Ismartu India Private Limited.

Details of the Acquisition 

Dixon Technologies (India) Limited stated that it had entered a Share Purchase Agreement with Ismartu In Pte. Limited (Ismartu Singapore), Transsion Technology Limited, 5A advisors LLP and Ismartu India Private Limited (Ismartu) for the proposed acquisition of a majority stake constituting 50.10% and further acquisitions in tranches in Ismartu and a Shareholders’ Agreement with Ismartu Singapore, 5A Advisors LLP, and Ismartu for operation and management of Ismartu.

The company further said that the consummation of the transaction as per the definitive agreement will be subject to the approval of the Competition Commission of India (CCI) and other customary closing conditions. A detailed intimation to this effect under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 has been made to the stock exchanges.

Ismartu manufactures electronics and mobile devices in three state-of-the-art facilities in Noida under the brand names Itel, Infinix, and Tecno. It is one of the market leaders in the smartphone and feature phone categories in India.

The Vice Chairman and Managing Director of Dixon Technologies (India) Limited, Mr Atul B. Lall, said, “This acquisition is a momentous milestone for us, solidifying our positioning for sustained success and continued leadership in the mobile phones manufacturing industry in India.”

He further added, “The “ISMARTU” team brings a wealth of experience and knowledge to the table, and we are excited to work together to create a stronger, more diversified, and future-proof organisation. The combined expertise, resources, engineering prowess and other manufacturing capabilities of both companies will further capitalise on growth opportunities in the burgeoning Indian EMS industry, and we are excited to contribute to the nation’s growth story.”

He also said that they are confident that this collaboration is just the beginning of a large and prolific relationship, and there is immense potential to additionally build on the shared capabilities like other electronic product categories, creation of a component ecosystem in India and access to Global Markets to deliver continued and sustainable growth. Dixon Technologies remains committed to delivering exceptional value to its stakeholders.

About Dixon Technologies (India) Limited

Dixon Technologies (India) Limited is the largest home-grown design-focused solutions company that manufactures products in the consumer durables, mobile phone, and lighting markets in India. On April 9, 2024, the share price of Dixon Technologies (India) Limited opened at ₹7,800.00, touching the day’s high at ₹7,878.30, as of 9:46 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.