Optiemus Infracom shares extend two-day rally to 33%: Here are two reasons

The latest market report highlights that Optiemus Infracom shares rose 13% to Rs 804.25 apiece on September 13, extending their two-day surge to 33% due to two reasons, including expansion of its partnership with Nothing Electronics.

The stock surged soon on September 22 after the firm announced expansion of its partnership with Nothing Electronics by entering into a binding term sheet to establish a joint venture for the commercialisation and sale of CMF products. The sentiment around the stock additionally improved after the firm stated it scheduled to expand its smartphone screen-protector manufacturing capacity by 20 million units to capitalise on the government's mandatory Bureau of Indian Standards certification deadline of April 1, 2027.

According to a notification issued by the Ministry of Electronics and Information Technology, screen protectors for mobile phones have been further noted to the schedule of goods requiring mandatory BIS certification. Optiemus Infracom sees this as an opportunity to build globally competitive capabilities and an export-oriented manufacturing ecosystem, its Executive Chairman Ashok Gupta stated. "With the right standards, scale and capabilities, India can move beyond being a major consumer market to becoming a global hub for screen-protector manufacturing, creating greater value in India, for India and for the world," he stated.

"At Optiemus Infracom, we are building on our existing screen-protector manufacturing capabilities, with a scheduled additional capacity of 2 crore (20 million) units, to meet emerging demand and contribute to the expansion of the domestic ecosystem," he further noted. At present, Optiemus Infracom operates its screen protectors business under the "RhinoTech" brand.

On September 23, around 15.85 lakh shares (1.82% equity) worth Rs 136 crore change hands at an average of Rs 845 per share through block deals.

Under the binding term sheet with Nothing Electronics, Optiemus Infracom will initially acquire a 51.1% equity share capital of the proposed joint venture firm for the sale of CMF products, including mobile phones and their subassemblies or components. Manufacturing, ownership, and research and development will additionally be brought together under the Indian JV, with CMF aiming to build smartphones in India for global markets, Optiemus stated in a press release. Under this partnership, Optiemus will additionally join Nothing Electronics' upcoming Series A investment round for the CMF brand, it stated.

Under the CRO framework, products covered by notified standards cannot be manufactured, imported or sold in India without mandatory certification compliance. For screen protectors, the proposed standards are anticipated to cover parameters such as impact resistance, material quality, transparency and durability.

The move is anticipated to significantly alter India’s smartphone accessories market, which consumes more than 550 million units annually and stays heavily dependent on low-cost imports, particularly from China and other Asian manufacturing hubs, according to market estimates.

The localisation propel additionally aligns with Prime Minister Narendra Modi’s recent call for reducing dependence on imported products and saving foreign exchange reserves by encouraging domestic manufacturing and greater use of indigenous products.