CG Power and Industrial Solutions Ltd’s shares surged on Wednesday following the company’s announcement that it has applied to the Ministry of Electronics and Information Technology (MeitY) to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in India. The firm plans to invest about $791 million (₹6,590 crore) over the next five years for this project.
What Happened? In a communication to the stock exchange, CG Power revealed its application for subsidies under a government scheme aimed at setting up semiconductor facilities in India. The scheme covers compound semiconductors, silicon photonics, sensors, and semiconductor assembly, testing, marking, and packaging (ATMP) facilities.
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The company outlined its funding strategy for the project, expecting to finance it through a mix of subsidies, equity contributions from joint venture partners, and debt as needed. Discussions regarding this financing plan are currently in progress.
CG Power’s move to set up an OSAT facility aligns with India’s growing focus on semiconductor manufacturing, a key sector in the global electronics industry. The company’s initiative represents a significant step in boosting India’s capabilities in this critical area.
Price Action: Following the announcement, the company’s shares jumped about 20% to ₹469, hitting a new 52-week high.
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