Dixon Technologies (India) Ltd, one of the foremost entities in the contract manufacturing sector, has officially declared the achievement of a major corporate deal. The company has successfully acquired a 51% majority in Kunshan Q Tech Microelectronics (India) Pvt Ltd, otherwise known as Q Tech India. This purchase was achieved at an overall consideration of ₹552.99 crore, commonly referred to as about ₹553 crore. On September 29, 2025, when this significant deal was announced, there was an immediate drop in the valuation of the Dixon stocks.

Details of the transactions

The Dixon Technologies shares fell by 4.43% to reach the market at 16,735 in the early trade. This short-term decline in the share value followed directly on the heels of the official release of the information about the end of the takeover process. The decision by Dixon to acquire a majority stake in Q Tech India is a landmark in the continued increase and diversification plans of Q Tech India in the consumer electronics market.

The entire ₹552.99 crore deal to acquire the 51% majority interest in Q Tech India was framed in two separate financial parts. On September 26, 2025, Dixon Technologies signed a share subscription and purchase agreement to formalise the process of acquisition. The former was a direct share purchase of 1,61,50,943 equity shares, and the purchase price was ₹427.99 crore.

The second part of the transaction was a share subscription, which was a purchase of 47,16,981 shares at an overall cost of ₹125 crore. With these two factors added together, Dixon successfully bid for ₹2.08 crore shares in total, which totals the total cost of ₹552.99 crore. The company ensured that this acquisition of Q Tech India was formally clarified as not a related party arrangement, and this provided transparency on the nature of the transaction.

Partnership and market response

The business structure of Q Tech India is now well established, with Dixon and the nominated representatives holding the majority 51% share. Q Technology (Singapore), the former shareholder, holds the remaining 49% share in the company. In order to manage this alliance and establish the rights and obligations of the partners, Dixon, Q Tech India, and Q Technology (Singapore) signed a detailed shareholders’ agreement on September 26, 2025.

The provisions mention that two directors are allowed to be nominated by both parties to the board as long as they hold at least 28% of the equity stake in Q Tech India. Under the agreement, both parties will retain their right to nominate only a single director in case their ownership interest is later diluted to 14%.

In addition to board representation, the document also gives customary rights about financial and operational issues. It also provides reserved matters, including approval procedures, indemnities, and dispute resolution mechanisms, providing a clear guide to how the joint operation of Q Tech India should take place, with Dixon holding the greater majority.

The strategic acquisition was met with a rather bad reception in the market, as the stock of Dixon showed a serious decline on the announcement day. The share price opened at ₹17,530 and closed at ₹16,679, a loss of ₹832.00, or 4.75%. of the prior closing price of ₹17,511.

The fall was so strong and it left the high of ₹17,637 in the initial trade to a low of ₹16,626 by the end of the day. Such a negative trend, even though a significant corporate transaction was completed, has been blamed on the probability of imminent profit accrual by investors.

The company has a strong market capitalization of ₹1,01,179 crore, making it a constituent of the NIFTY Midcap 50 index. The current share price of the stock still falls between its 52-week range of ₹12,202 to ₹19,148, so it can be assumed that the recent downturn is a temporary adjustment of the stock rather than a re-examination of its long-term worth.

Conclusion

The successful completion of a 51% share acquisition in Q Tech India by Dixon Technologies at ₹552.99 crore is a key strategic move in the history of Dixon Technologies, a consumer electronics contract manufacturer. The transaction is a share purchase and subscription transaction that creates a majority shareholding by Dixon with Q Technology (Singapore) continuing as a 49% shareholder with an elaborate shareholders’ agreement defining majority representation and right to operations.