 "Cyient to set-up subsidiary for semiconductor business; stock rallies 7%")
Cyient stock zooms: Shares of IT major Cyient rose as much as 7 per cent to hit an intraday high of Rs 1,900 per share on Friday.
The uptick in stock price came after the company announced the strategic expansion of its semiconductor business with the establishment of a fully owned subsidiary.
“The decision marks a major leap forward in Cyient’s commitment to innovation and excellence within India's growing semiconductor landscape,” the company said in a statement.
"We are happy to announce this strategic initiative that enhances our capabilities in Application Specific Integrated Circuit (ASIC) turnkey design and manufacturing. As the global semiconductor market is expected to hit a trillion dollars by 2030 and the Indian Electronics and Semiconductor Association (IESA) forecasting the industry's growth to USD 100 billion by 2030, we are well positioned to capitalise on the vast opportunities for growth and influence in this evolving market,” said Krishna Bodanapu, vice chairman & managing director of Cyient Limited.
Furthermore, Cyient’s portfolio of more than 600 intellectual properties (IP) spans various functions and technology nodes. Combined with longstanding partnerships with major customers and global capabilities, the company is strategically set for strong growth, Cyient said.
Through its subsidiary, Cyient aims to bolster its industry standing by providing top-tier specialised turnkey ASIC design and chip sales, it added.
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“Cyient's credentials in the semiconductor electronics sector through Cyient DET and Cyient DLM have enabled us to set-up this subsidiary to drive a dedicated focus on turnkey ASIC design and chip sales through a fabless model for analog mixed-signal chips. This subsidiary ushers a new avenue of possibilities for Cyient to enhance value to our stakeholders and we are grateful for their continued support in this journey,” Bodanapu added.
Cyient is engaged in providing global technology services and solutions specialising in geospatial, engineering design, IT solutions and data analytics.
The market capitalisation of Cyient is Rs 20,389.59 crore, according to Bombay Stock Exchange (BSE). The 52-week high of the stock is Rs 2,457 while its 52-week low is Rs 1,415 per share.
At 1:56 PM, shares of Cyient were trading 3.53 per cent higher at Rs 1,838.30 per share. In comparison, BSE Sensex was trading 0.95 per cent higher at 80,656.29 levels.