Why Is Dixon Tech's Share Price On The Rise Today?
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Shares of Dixon Technologies were gaining on Tuesday after the electronics manufacturer said it would sell its stake in a joint venture to the Aditya Group’s tech arm.

What Happened: Dixon Tech plans to divest its entire 50% stake in its JV, AIL Dixon Tech, to Aditya Infotech. In return, Dixon will acquire a 6.5% stake in Aditya Infotech, according to an exchange filing.

The deal involves Dixon subscribing to 73.05 lakh equity shares of AIL, representing 6.5% of its post-issue share capital. This will be exchanged for 95 lakh equity shares of AIL Dixon Technologies Private Limited, representing 50% of the JV company’s share capital.

See Also: Yes Bank Shares Jump After Lender Dismisses Report Of Up To 51% Stake Sale

Dixon Technologies also signed a shareholders’ agreement with AIL and its existing shareholders to govern their relationship after the acquisition of the minority stake. This agreement will take effect upon the subscription of shares and will outline management and operational frameworks for AIL.

The deal and share transfer are subject to conditions precedent, including approval from the Competition Commission of India.

Aditya Infotech is an unlisted public company that sources, distributes and markets security systems under various brands. The company reported a revenue of ₹2,298 crore for the financial year ending March 2023.

What Happened: Shares of Dixon Technologies were up 1.03% at ₹12,610.90 in morning trade on Tuesday. The stock has nearly doubled in value so far this year.

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