Dixon Tech shares jump after company notifies proposed majority stake acquisition in Ismartu India

Dixon Technologies (India) has said in an exchange filing that it has entered into an agreement with Ismartu Singapore and Ismartu for the proposed acquisition of a majority stake in Ismartu India. Shares of Dixon Tech were trading over 2% higher on Tuesday morning.

Ismartu is engaged in electronics and mobile devices manufacturing with three state-of-the-art manufacturing facilities in Noida under the brand name of ‘Itel,’ ‘Infinix’ and ‘Tecno.’

The proposed acquisition of majority stake constitutes 50.1% and further acquisitions in tranchesin Ismartu along with the shareholders’ agreement with Ismartu Singapore, 5A Advisors LLP, and Ismartu for the operation and management of Ismartu, Dixon indicated in the release.

Atul B. Lall, vice chairman and managing director at Dixon Technologies (India) said the Ismartu team brings a wealth of experience and knowledge to the table. “The combined expertise, resources, engineering prowess and other manufacturing capabilities of both the companies will further capitalize on growth opportunities in the burgeoning Indian electronics manufacturing services (EMS) industry and we are excited to contribute to the nation's growth story," he said.

Dixon Technologies (India) is a design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Their diversified product portfolio includes consumer electronics like LED TVs, home appliances like washing machines, lighting products like LED bulbs and tubelights, downlighters and mobile phones among others.

Dixon Tech stated in an exchange filing that upon successful acquisition of Tranche 1 shares, the company will hold 50.10%, Ismartu Singapore will hold 48.65% and 5A Advisors will hold 1.25% of the total issued and paid up share capital Ismartu India on a fully diluted basis.

Upon successful acquisition of Tranche 2 shares, the company will hold a minimum of 51.70% and at its option, a maximum of 56% of the total issued and paid-up share capital of Ismartu India. Accordingly, Ismartu Singapore will hold between 42.75% and 47.05% of the target company, and 5A Advisors will continue to hold 1.25% of the total issued and paid-up share capital of the firm on a fully diluted basis, it said.