Dixon Technologies (India) Limited has entered into a share subscription and purchase agreement to acquire a 51% stake in Kunshan Q Tech Microelectronics (India) Private Limited. The deal involves purchasing existing shares and subscribing to new shares, with a total investment of INR 5,529,999,860. This acquisition aims to enhance Dixon’s manufacturing capabilities and strengthen its backward integration plans.
Strategic Acquisition Announced
Dixon Technologies (India) Limited (DTIL) is set to acquire a majority stake in Kunshan Q Tech Microelectronics (India) Private Limited (Target Company). The acquisition will be executed through a share subscription and purchase agreement. This move will give Dixon Technologies a stronger foothold in the electronics manufacturing ecosystem.
Deal Structure and Consideration
The acquisition involves a two-pronged approach:
DTIL will purchase 16,150,943 equity shares from existing shareholders Q Tech Singapore and Q Tech International for INR 4,279,999,895.
DTIL will subscribe to 4,716,981 new equity shares for INR 1,249,999,965.
Following the purchase and subscription, DTIL will hold 51% of the Target Company’s paid-up share capital on a fully diluted basis. The total investment amounts to INR 5,529,999,860.
Rationale Behind the Acquisition
The acquisition of Kunshan Q Tech Microelectronics is aimed at enhancing DTIL’s manufacturing capabilities and execution abilities in areas such as mobile handsets, IoT devices, and automotive applications. The company expects that this will lead to stronger backward integration plans. The deal is expected to strengthen DTIL’s long-term vision and unlock synergies in India’s electronics manufacturing sector, as well as facilitate technology transfer.
About Kunshan Q Tech Microelectronics
Kunshan Q Tech Microelectronics (India) Private Limited is involved in the manufacturing, sale, and distribution of camera and fingerprint modules for mobile handsets, IoT systems, and automotive applications. Incorporated on January 10, 2019, their turnover for the last three financial years is as follows (in Crores):
2022-23: 1,899.0195
2023-24: 2,434.9907
2024-25: 1,977.2059
Source: BSE
