Q TECH (01478) announced on July 15, 2025 (post-trading hours) that its indirect wholly-owned subsidiary India Q TECH and selling shareholders executed a binding term sheet with Dixon Technologies. Under this agreement, Dixon conditionally commits to acquiring 51% of India Q TECH's paid-up capital through combined share purchase and subscription mechanisms. Final terms remain subject to negotiations detailed in forthcoming transaction documents.

The total consideration stands provisionally at INR 5.53 billion (approximately USD 66 million), allocated as follows: INR 4.28 billion for the share acquisition portion and INR 1.25 billion for the new share issuance component.

India's status as the world's most populous nation drives immense consumption potential for smart terminal devices, fueling projected steady demand growth for camera modules and fingerprint recognition components. Establishing comprehensive operational capabilities in India proves critical for capturing greater market share in these segments. Government incentives like production subsidies would further empower India Q TECH to scale manufacturing capacity and enhance client servicing abilities.

Amid current macroeconomic conditions, strategic diversification through partnerships with domestic Indian enterprises offers competitive advantages. Dixon ranks among India's largest electronics manufacturing service providers, sharing synergistic industry positioning and customer networks with India Q TECH. The collaboration addresses Dixon's substantial procurement requirements and long-term development needs for optical and biometric modules.

Q TECH's board asserts this equity alliance will accelerate India Q TECH's expansion trajectory, enabling rapid market penetration across India while ultimately boosting operational performance for both the subsidiary and parent company.