Dixon Technologies shares rose nearly 4 per cent after its arm, Padget Electronics, was approved as a mobile manufacturing partner under the government's Production Linked Incentive (PLI) scheme for Large Scale Electronics Manufacturing. Under the scheme, the company will get an incentive of 4 per cent to 6 per cent on incremental sales (over base year) of goods manufactured in the country. Dixon Technologies shares jumped as much as 3.81 per cent to Rs 9,056.30 apiece on the BSE at the strongest level of the day, having started the session marginally higher at Rs 9,009 compared to their previous close of Rs 8,723.75.
"Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics are approved by MeitY. These companies are expected to expand their manufacturing operations in a significant manner and grow into national champion companies in mobile phone production," the Ministry of Electronics and IT said in a press release.
"PLI scheme has been huge success in terms of the applications received from Global as well as Domestic Mobile Phone manufacturing companies and electronic components manufacturers," Minister for Electronics & IT, Communications, Law and Justice Ravi Shankar Prasad said.
Over the next five years, the companies approved under the PLI scheme are expected to lead to total production of more than Rs 10.5 lakh crore. Out of the total production, the approved companies under the mobile phone segment have proposed a production of over Rs 9 lakh crore.
The approved companies have proposed a production of about Rs 1.25 lakh crore and those under the specified electronic components segment have proposed a production of over Rs 15,000 crore, the ministry said.
At 11:22 am, Dixon Technologies shares traded 0.7 per cent higher at Rs 8,795 on the bourse, outperforming the benchmark S&P BSE Sensex index, which was up 0.4 per cent.