CG Power and Industrial Solutions have submitted an application to the Ministry of Electronics and Information Technology (MeitY) for the establishment of an outsourced semiconductor assembly and test facility. The projected investment for this initiative amounts to $791 million (Rs 6,592 crore) and is anticipated to be implemented over a span of five years. The company disclosed that funding for the project would come from a combination of subsidies, equity contributions from joint venture partners, and necessary debt, as outlined in a filing with the Bombay Stock Exchange (BSE).

Following the announcement of these plans, CG Power & Industrial Solutions experienced a surge, with its shares reaching a record high and being locked in the 20 percent upper circuit at Rs 469. Trading data revealed a notable activity, with 15.4 million equity shares changing hands on both the NSE and BSE. There were also pending buy orders totaling 3.7 million shares on both exchanges. This positive market response occurred amidst a broader context where the Sensex saw a marginal decline of 0.22 percent, resting at 65,782.

In the official filing, CG Power conveyed that it has formally sought MeitY's approval for establishing an Outsourced Semiconductor Assembly and Test (OSAT) facility, along with a request for a subsidy for the proposed project. Additionally, the company is contemplating the implementation of the project through a joint venture in collaboration with technology providers and anchor customers, with discussions currently underway.

The Murugappa Group, to which CG Power belongs, holds leadership positions across various business sectors, including Abrasives, Technical Ceramics, Electro Minerals, Auto Components & Systems, Power Conversion Equipment, Transformers & Reactors for the Power T&D segment, and Solutions for Railways in Rolling Stock & Signalling Equipment. The group has established strong partnerships with renowned international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Yanmar & Co., and Compagnie Des Phosphat De Gafsa (CPG). Their businesses cater to a diverse customer base in India and extend their services to over 50 countries.

courtesy by : Business  Standard