Q Tech sells majority stake in Indian unit, retains minority holding

Q Technology (Group) Co. is disposing of a 51.08% equity interest in its Indian subsidiary, Q Tech India, to Dixon Technologies (India) Limited. The total consideration for this transaction is INR5,529,999,860, comprising INR4,279,999,895 for the share purchase and INR1,249,999,965 for the share subscription. Upon closing, Q Tech India will cease to be consolidated as a subsidiary of Q Technology (Group) Co., which will retain a 48.92% equity interest.

The valuation of Q Tech India was set at INR10,946,000,000, based on factors including its unaudited net profit after tax for the year ended 31 March 2025 (INR705,530,000), an EV/profit multiple of 32.0x, and an effective discount of 45.6%.

The group will continue to provide existing loans to Q Tech India totaling $38,000,000, plus an additional ECB loan of $10,000,000. These loans, provided from internal resources, bear an interest rate of One-year SOFR plus 25 basis points per annum. This financial assistance aims to support Q Tech India’s operations and expansion, aligning with the group's long-term interests.