Key Transaction Details

  • Dixon Technologies has provided an unconditional guarantee for its unlisted material wholly owned subsidiary, Padget Electronics Private Limited
  • The guarantee is in favor of Quanta Computer Inc. for Padget's purchase of materials, parts & components from Quanta
  • Maximum guarantee amount: US$ 7,000,000 (United States Dollars Seven Million)
  • The guarantee becomes effective only if Padget becomes a defaulting party of the invoice terms with Quanta

Relationship and Transaction Nature

  • Padget Electronics Private Limited is an unlisted material wholly owned subsidiary of Dixon Technologies
  • Promoter/Promoter group/group companies have no interest in this transaction other than the subsidiary relationship
  • The guarantee is confirmed to be given at arm's length basis

Financial Impact

  • There is no immediate financial impact on Dixon Technologies
  • The guarantee will be recorded as a contingent liability in Dixon's books
  • Maximum exposure is limited to US$ 7,000,000