Indian electronics company Dixon Technologies gained 5% after its subsidiary tie-up.
India’s electronics manufacturing company Dixon Technologies shares went up by 5% on Monday after it entered into a deal with US smartphone manufacturer Motorola.
Padget Electronics, a wholly owned subsidiary of Dixon Technologies, signed a contract with Lenovo-owned Motorola for producing smartphones. “The products will be developed and manufactured at a unit in Uttar Pradesh, India,” said the company during an exchange filing on Monday.
Padget Electronics is also one of the five domestic manufacturers that will benefit from the Indian government’s new production-linked incentive (PLI) scheme.
Dixon Technology stocks were trading at 4.55% higher at Rs 13,300.8 ($181.22) on the Bombay Stock Exchange (BSE) in the post noon trade.
During the filing, Vice Chairman at Dixon Atul B Lall said: “We are positive that this is just a starting leg of a long and prolific relation. We will be doing smartphones for Motorola.”