Shares of Dixon Technologies rose as much as 3.15% in intraday trade on Tuesday after a CNBC-Awaaz report said the proposed joint venture between the company and Vivo is likely to receive government approval soon.
The stock later pared some gains to trade 2.35% higher at Rs 12,082.
According to CNBC-Awaaz, citing sources, the process of issuing the approval letter is in its final stages and the government is expected to send the formal approval to the company shortly.
Sources added that the proposed joint venture has already received clearance from the Inter-Ministerial Group (IMG), with only the formal issuance of the government's approval letter pending.
The approval is expected to clear the way for Dixon Technologies and Vivo to move ahead with the proposed partnership in India's electronics manufacturing sector.
There was no immediate official comment from either Dixon Technologies or Vivo on the reported development.
Vivo's manufacturing facility in Noida is expected to be brought under the proposed joint venture, a move that could significantly reduce the Chinese smartphone maker's regulatory and operational exposure in India.
The plant is likely to handle a portion of Vivo's smartphone manufacturing requirements for the domestic market while also undertaking original equipment manufacturing (OEM) for electronic products of other brands.
Vivo remains one of India's largest smartphone vendors, with estimated sales of around 3.5 crore handsets in 2025. In comparison, Dixon Technologies manufactured approximately 3.2 crore mobile phones during the period.
For FY26, Dixon Technologies reported revenue of Rs 48,873 crore, with its mobile phone and electronics manufacturing services (EMS) business accounting for Rs 44,257 crore, underscoring the segment's importance to the company's overall operations.