Dixon Technologies shares climbed more than 4.7% following reports of government progress on its joint venture with Vivo. An inter-ministerial panel granted in-principle approval for the partnership. Final clearance for the deal is expected shortly.
Dixon will hold a 51% majority stake in the joint venture. The agreement integrates Vivo’s Noida manufacturing facility into the new operations.
The partnership adds an estimated 22 million to 23 million smartphone units to Dixon’s annual production. This expansion creates a substantial new revenue stream for the manufacturer.