Dixon Technologies (India) Limited has disclosed the issuance of a guarantee covering its unlisted material wholly owned subsidiary, Padget Electronics Private Limited (PEPL). The guarantee is provided in favor of Foxlink India Electric Private Limited up to an aggregate limit of USD 10,000,000. This contingent liability becomes effective if PEPL defaults on raw material purchase agreements with Foxlink. Dixon confirms the arrangement is at an arm’s length basis, with no direct interest from the promoter group.
Disclosure of Third-Party Guarantee
Dixon Technologies (India) Limited announced on 16th March, 2026, that it has provided a guarantee to support its subsidiary operations. This disclosure is in compliance with applicable regulations concerning corporate obligations.
Beneficiary and Subsidiary Details
The guarantee has been issued on behalf of Padget Electronics Private Limited (“PEPL”), which is an unlisted material wholly owned subsidiary of Dixon. The guarantee is in favor of Foxlink India Electric Private Limited (“Foxlink”).
Terms and Financial Exposure
Dixon has committed to providing a guarantee up to an aggregate limit of USD 10,000,000 (Ten Million United States Dollars). This financial protection covers potential defaults by PEPL related to invoice terms concerning the purchase of raw materials supplied by Foxlink.
Crucially, the company confirmed that the Promoter/ Promoter group/ group companies do not hold any interest in this specific transaction beyond the existing relationship, and the agreement is conducted on an “arm’s length” basis.
Impact on Dixon Technologies
The company clarified that there is no immediate impact on Dixon, as the liability is contingent upon a default event. However, the amount guaranteed will be recorded as a contingent liability in the books of Dixon.
Authorization
The disclosure was authorized and signed by Ashish Kumar, President- Chief Legal Counsel & Group Company Secretary of Dixon Technologies (India) Limited.
Source: BSE
