Large-cap stock gained 20 percent to its upper circuit of Rs 469 on Wednesday after the company filed an application with the Ministry of Electronics and Information Technology (MeitY), to seek approval to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility.
According to CG Power and Industry Solution filling, the company has also applied for a subsidy grant for the project under the Modified scheme for establishing Compound Semiconductors, Silicon Photonics, Sensors Fab, Discrete Semiconductors Fab and Semiconductor Assembly, Testing, Marking, and Packaging (ATMP), Outsourced Semiconductor Assembly and Test (OSAT) facilities in India.
The company proposes to implement the same as a Joint Venture in collaboration with technology providers/anchor customers, which is currently being discussed. The estimated investment in the project over a five-year period is 791 million US dollars, which will be funded through a combination of subsidy, JV Partners equity contribution, and debt, as needed.
The company has reported its net revenue rose 19.5 percent year on year from Rs 1,674 crores in Q2FY23 to Rs 2,001 crores in Q2FY24. In addition, net profit rose 35 percent year on year, from Rs 179 crores in Q2FY23 to Rs 242 crores in Q2FY24.
The company’s promoters hold a 58.1 percent stake in the company, with 16.7 percent owned by foreign institutional investors, 17.3 percent owned by the general public, and 7.8 percent owned by domestic institutional investors.
CG Power and Industry Solution Limited is a large-cap company with a market capitalization of Rs 59,740 crores. It also has a return on equity (ROE) of 57 percent and a return on capital employed (ROCE) of 65 percent.
The share price of CG Power and Industry Solution Limited Company has increased by 33% in the last six months and by 73.45% year to date.
CG Power & Industrial Solutions is a global company that provides end-to-end solutions for the management and application of efficient and sustainable electrical energy to utilities, industries, and consumers. Its products, services, and solutions are divided into two major business segments: power systems and industrial systems.
Written by Sriram KV
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