DIXON TECHNOLOGIES INCORPORATES NEW SUBSIDIARY FOR SMARTPHONE MANUFACTURING IN INDIA

$DIXON is in the process of incorporating a new subsidiary called Adivistar Electronics India Private Limited, which will undertake the original equipment manufacturing (OEM) business of electronic devices including smartphones. DIXON will hold a 51% stake in the new entity, involving an initial investment of Rs 25.5 million, through the acquisition of 25,50,000 equity shares at a face value of Rs 10 per share. Having a market cap of Rs 86,000 crore, the company has been maintaining a strong ROCE and ROE of 42% and 37% respectively. Moreover, it has delivered a robust profit growth of 77% CAGR for the last 3 years, and with such new orders on hand, the company's profits are expected to grow in the coming years.