CG Power and Industrial Solutions shares witnessed a surge of 12%, reaching an intraday high of ₹494.95 in early trade on Friday.

What Happened: CG Power and Industrial Solutions, Renesas Electronics Corporation and Stars Microelectronics had recently established a joint venture to build and operate an OSAT facility in India.

The JV has been approved by the Union Cabinet under India’s Semiconductor scheme. The scheme, which aims to “Make in India for the World”, will see the facility set up in Sanand, Gujarat. The investment of ₹7,600 crores will be spread over five years, with CG owning 92.3% of the JV, while Renesas and Stars Microelectronics will hold approximately 6.8% and 0.9% equity capital respectively.

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S. Vellayan, chairman, CG Power, stated that the venture into semiconductor manufacturing represents a strategic diversification for CG. He expressed confidence in the partnership with Renesas and Stars Microelectronics, stating that it will enhance their focus on innovation and excellence.

Hidetoshi Shibata, CEO of Renesas, affirmed India’s critical role in Renesas' business and pledged to accelerate their investment in the country.

Prompong Chaikul, chairman of the executive committee of Stars Microelectronics, expressed his company’s commitment to the success of the project, promising robust support based on their expertise and experience in OSAT.

Price Action: CG Power’s share price was up 7.34% to trade at ₹475.80 on Friday morning.

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