Shares of Dixon Technologies (India) Ltd rallied more than 6% on Tuesday after the company announced that it has received approval from the Government of India to proceed with its proposed joint venture with HKC Overseas Limited, an affiliate of HKC Corporation Limited.
In a regulatory filing, the company said the approval was granted by the Ministry of Electronics and Information Technology (MeitY) under the provisions of Press Note 3 of 2020. The rule mandates government approval for foreign investments from entities located in countries that share a land border with India or where the beneficial owner is based in such countries.
The approval clears a key regulatory hurdle for the joint venture that Dixon Technologies had previously announced in August 2025. At that time, the company had executed a share subscription and shareholders’ agreement with HKC Overseas Limited and Dixon Display Technologies Private Limited (DDTPL), which is currently a wholly owned subsidiary of Dixon.
Under the proposed structure, Dixon Technologies will hold a 74% stake in the joint venture, while HKC Overseas will own the remaining 26%. Once the transaction is completed, Dixon Display Technologies Private Limited will cease to be a wholly owned subsidiary of Dixon and will instead operate as a joint venture entity jointly owned by the two partners.
The joint venture will focus on the development, manufacturing and distribution of display modules, particularly liquid crystal modules (LCM) and thin-film transistor liquid crystal display (TFT-LCD) modules. These components are widely used across several high-growth sectors including smartphones, notebooks and laptops, televisions and monitors, automotive displays, and industrial electronic devices.
The collaboration is expected to strengthen India’s domestic electronics manufacturing ecosystem by boosting local production of display components, an area where the country currently relies heavily on imports. By expanding domestic capabilities in advanced display technologies, the partnership aligns with the government’s broader Make in India initiative aimed at building a robust electronics manufacturing supply chain within the country.
Press Note 3 approval was a critical requirement for the transaction because HKC Overseas is an overseas entity linked to a country sharing a land border with India. The clearance from MeitY now allows HKC Overseas to proceed with its investment in Dixon Display Technologies as part of the joint venture.
However, the company noted that the transaction will be completed only after fulfilling additional conditions outlined in the shareholders’ agreement.