The shares of this leading company in the electrical engineering industry rose 11.3 percent to ₹494.40 per share on Friday after the company formed a joint venture with Japanese and Thailand companies to build a semiconductor assembly facility in India.
CG Power & Industrial Solutions Ltd. belongs to the large-cap category of stocks with a market capitalization of ₹71,699 crores. At 11:25 a.m., the company shares were trading at ₹468.35 per share, up 5.52 percent from the previous close price.
CG Power and Industrial Solutions Limited, Renesas Electronics Corporation (Japan), and Stars Microelectronics Public Company (Thailand) signed a Joint Venture Agreement (JVA). To establish a joint venture (JV) to build and operate an outsourced semiconductor assembly and testing (OSAT) facility in India.
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved the project of the JV under India’s Semiconductor Scheme on February 29, 2024.
For the semiconductor project, Renesas, a leading semiconductor company headquartered in Japan, will provide advanced semiconductor technology and expertise. Stars Microelectronics, a Thailand-based company, will provide both technologies for legacy packages and training and enablement. The company mentioned this in its exchange filing.
The JV will be 92.3% owned by CG power, with Renesas and Stars Microelectronics each holding equity capital of approximately 6.8% and 0.9%, respectively. The JV plans to invest ₹ 7,600 crores over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as required.
The JV will set up a state-of-the-art manufacturing facility in Sanand, Gujarat, with a capacity that will ramp up to 15 million units per day. The JV will manufacture a wide range of products ranging from legacy packages such as QFN and QFP to advanced packages such as FC BGA, and FC CSP. The JV will cater to industries such as automotive, consumer, industrial, and 5G, to name a few.
CG Power & Industrial Solution Ltd. stock gave a 10 percent return in six months and 53 percent in one year.
CG Power & Industrial Solutions is a multinational company that offers utilities, businesses, and consumers comprehensive solutions for the efficient and sustainable management and utilisation of electrical energy.
Furthermore, Inox India’s year-on-year revenue witnessed a 13 percent surge, rising from ₹1,752 crore in Q3 FY23 to ₹1,979 crore in Q3 FY24. Concurrently, the net profit also experienced a 228 percent increase, ascending from ₹228 crore to ₹748 crore during this period.
Written by Omkar Chitnis
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