DTDixon Technologies (India)540699Admin disclosure update

Unconditional guarantee up to US$ 7,000,000 for subsidiary Padget, in favour of Quanta

Dixon gave an unconditional guarantee for its wholly owned subsidiary Padget Electronics in favour of Quanta Computer Inc., up to US$ 7,000,000.

By ScoutQuest · Wed 21 Oct 2026, 6:42 PM IST · 1 min read

Guarantee Amount

US$ 7,000,000

Guarantee Trigger

only if Padget defaults on Quanta's invoice terms for materials, parts & components

Accounting Treatment

contingent liability; no immediate impact

What the company told the exchanges

Dixon Technologies has disclosed that it has agreed to provide an unconditional guarantee for its unlisted material wholly owned subsidiary, Padget Electronics Private Limited, in favour of Quanta Computer Inc. The disclosure was made under Regulation 30 of the SEBI LODR Regulations.

The amount involved

• The guarantee is up to an aggregate limit of US$ 7,000,000 (United States Dollars Seven Million only).
• That figure is the stated cap on the guarantee.

When the guarantee gets triggered

• Padget purchases materials, parts & components from Quanta.
• The guarantee becomes effective only if Padget becomes a defaulting party on Quanta's invoice terms for those purchases.
• The guarantee has been given on an arm's length basis.

Impact on the listed entity, as stated in the update

• There is no immediate impact on Dixon, except to the extent of the amount for which the guarantee has been provided.
• The guarantee issued will be a contingent liability in the books of Dixon, i.e. a potential obligation that would matter only if the trigger event occurs.

Ownership and interest

• Padget is an unlisted material wholly owned subsidiary of Dixon.
• Other than that, the promoter, promoter group and group companies have no interest in the transaction.

How a retail investor might read this

• It is a parent-company support arrangement for a wholly owned subsidiary's purchases from a supplier, Quanta.
• The stated exposure is capped at US$ 7,000,000 on an aggregate basis.
• It turns into an actual obligation only if Padget defaults on Quanta's invoice terms.
• The update itself characterises it as a contingent liability with no immediate impact beyond that amount.

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