Dixon Technologies share price rises after firm signs JV with Signify Innovations; check details

“Dixon and Signify are pleased to announce the execution of a binding term sheet on March 27, 2025, for a proposed joint venture in India for carrying on the business as an original equipment manufacturer (OEM) of lighting products and accessories,” the company said in a statement to the stock exchanges.

Each of Dixon and Signify will hold a 50% stake in the joint venture entity to be incorporated for this purpose. Neither Dixon nor Signify will have any stake in each other.

Dixon, in its statement, further said that parties will agree to the detailed provisions in relation to setting up the JV entity, its governance, valuation of the transaction and other terms and conditions in the definitive agreements.

“The transaction will be subject to the execution of such definitive agreements, completion of customary conditions precedent and receipt of applicable regulatory approvals, if applicable,” the firm said.

Following the development, shares of Dixon Technologies rose 1%. At 2:30 PM, shares of the firm were trading at ₹13,374.60 apiece, up 0.86% on the National Stock Exchange.

Commenting on the JV, Signify Innovations managing director and chief executive officer said, “Aligned to the government’s Make in India vision, this proposed joint venture with Dixon Technologies will create a world-class manufacturing company that combines the technology leadership, pricing, and offerings to the customers. With Signify’s unparalleled understanding of lighting technologies and Dixon’s manufacturing excellence, this joint venture will manufacture high-quality competitive lighting products in India.”

Further, the JV company is yet to be incorporated. Accordingly, the name, size and turnover of the JV company are not available for disclosure.

“The transfer of lighting business, including the sale of DTSPL’s shares by Dixon to the JV Company, will be a related party transaction for Dixon since Dixon will hold a 50% shareholding in the JV Company. Other than the above, the promoter/promoter group/group companies of Dixon will have no interest in the JV Company,” Dixon said.