Shares of Dixon Technologies (India) Ltd are in action today, even as the benchmark indices trade lower in line with a muted trend in global equities amid an uptick in US inflation. The 30-share BSE Sensex dropped 103.16 points to 82,467.75 in early trade and the 50-share NSE Nifty dipped 56.75 points to 25,139.05. But shares of Dixon opened gap up at Rs 16,377.95, with a gain of 3.54 per cent from the previous close of Rs 15,818.20 on the BSE. The scrip gained further to touch the high of Rs 16,428 - a gain of 3.85. Last seen, it held firmly in green and was trading at Rs 16,244.20.
Technically, the stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The 52-week high of the stock is Rs 19,149.80 and the 52-week low is Rs 10,613. The market cap of the company is Rs 98,289.53.
What Is Behind The Rally
The latest action in the stock comes as the company has informed exchanges that it has signed a binding term sheet for the acquisition of an aggregate of 51 per cent shareholding in Kunshan Q Tech Microelectronics (India) Private Limited or Q Tech India.
"Dixon has entered into a binding term sheet with Kunshan Q Tech Microelectronics (India) Private Limited (“Q Tech India”), Q Technology (Singapore) Private Limited (“Q Tech Singapore”) and Kunshan Q Technology International Limited (“Q Tech International”) (collectively “Q Tech Group”) for the proposed acquisition of an aggregate of 51% shareholding in Q Tech India by Dixon for the purposes of collaboration in manufacturing, sale and distribution of camera and fingerprint modules for mobile
handsets, internet of things (IoT) systems and automotive applications," the filing reads.
How Will The Acquisition Help Dixon?
According to Dixon, the acquisition will enable the company to enhance its capabilities in this critical component by gaining access to advanced technology and high-precision manufacturing.
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
