1,900% rally in 5 years! Multibagger stock Dixon Tech gains 3% on THIS business expansion plan

Multibagger stock Dixon Technologies witnessed an over 3% rise in intra-day deals on Thursday, March 27, after the firm announced plans to form a joint venture (JV) to foray into the business of lighting products and accessories.

In an exchange filing today, Dixon Tech said it has entered into a binding term sheet with Signify Innovations India Limited to form a joint venture for carrying out the OEM business of lighting products and accessories, subject to signing of definitive agreements, receipt of applicable statutory approvals and completion of customary conditions precedent.

Dixon added that both companies will hold 50% of the share capital in the proposed joint venture entity. Neither Dixon nor Signify will have any stake in each other, it clarified.

The said joint venture will undertake part of Signify’s OEM orders of lighting products in India, and will also engage in the OEM business of various lighting products of other brands.

Commenting on the deal, Atul B. Lall, Vice Chairman and Managing Director of Dixon, said, “It gives us immense pleasure to partner with Signify India, the leader in the lighting segment. We see them as an ideal strategic partner that shares our core values of quality, innovation, manufacturing prowess, and customer centricity. We believe this proposed association will bolster our operational efficiency backed by Signify’s process orientation and strong understanding of lighting technologies."

Dixon Tech Stock Price Trend

Dixon Tech share price opened marginally higher at ₹13261.05, as against the previous close of ₹13252.10. Thereafter, it extended gains to the day's high of ₹13669.25, up 3.14%.

The stock, which is part of the BSE 200 index, has seen its shares rally 82% in the past one year. On a longer time frame of two and five years, the scrip has given multibagger returns to the tune of 380% and 1,900%, respectively.

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