Shares of Dixon Technologies surged 2% today, April 9th, following the company’s announcement of a significant move.
In an exchange filing, Dixon Technologies revealed its plans to acquire up to 56% equity in Ismartu In Pte. Ltd., marking a strategic step forward.
The acquisition will occur in two tranches, with the first tranche involving the acquisition of 1.38 crore equity shares of Ismartu India Pvt. Ltd., amounting to 50.1% of the total equity.
With an investment of ₹238.36 crore, Dixon will buy these shares from a number of companies, including Ismartu In Pte Ltd., Transsion Technology Ltd., and 5A Advisors LLP.
Adjustments may be made both before and after the conclusion of this original transaction.
The second tranche, slated for acquisition by fiscal year 2027, will witness Dixon acquiring a minimum of 4.43 lakh equity shares and a maximum of up to 16.33 lakh equity shares from Ismartu Singapore.
This acquisition, constituting 1.6% to 5.9% of the total equity, is contingent upon Ismartu achieving a profit after tax (PAT) of ₹200 crore in the financial year 2026. The valuation for this tranche will be determined based on 20 times the profit after tax of the target company for the financial year 2026.
As of 10:13 am, Dixon Technologies shares were trading 1.42% higher at ₹7,743.65 on NSE.
