 "CG Power zooms 20% on plan to set-up subsidy-backed new semiconductor unit")
CG Power and Industrial Solutions has filed an application with the Ministry of Electronics and Information Technology to set up an outsourced semiconductor assembly and test facility, the company said on Wednesday.
The estimated investment on the project is $791 million (Rs 6,592 crore), and will be spread over five years. The same is expected to be funded by a combination of subsidy, joint venture partners’ equity contribution and debt, as required, the company said in a BSE filing.
Shares of the firm were locked in the 20 per cent upper circuit at Rs 469, a record high, after the company announced the plans.
As many as 15.4 million equity shares had changed hands on the NSE and BSE, and there were pending buy orders for a combined 3.7 million shares on both the exchanges, data shows. In comparison, the Sensex was down 0.22 per cent at 65,782.
In an exchange filing, CG Power said the company filed an application with MeitY, seeking approval to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility and the grant of subsidy for the said project. The company has also proposed to implement the same as a Joint Venture in partnership with technology providers/anchor customers, which are under discussion. Murugappa Group's businesses hold leadership positions in several product lines including Abrasives, Technical Ceramics, Electro Minerals, Auto Components & Systems, Power Conversion Equipment, Transformers & Reactors for the Power T&D segment, Solutions for Railways in Rolling Stock & Signalling Equipment, Bicycles, Fertilisers, Sugar, Tea and Spirulina (Nutraceuticals).
The Group has forged strong alliances with leading international companies such as Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Yanmar & Co. and Compagnie Des Phosphat De Gafsa (CPG). The Group's businesses serve customers across the length and breadth of India and in over 50 countries.