CG Power Shares Up 3% After Launch Of India's First Outsourced Semiconductor Facility
CG Power shares rose as much as 2.47% to Rs 687.05 apiece. The stock has fallen 4.38% in the last 12 months.
Shares of CG Power and Industrial Solutions Ltd. surged over 3.4% in early trade after its subsidiary, CG Semi Private Ltd, inaugurated India’s first outsourced semiconductor assembly and test facility in Sanand, Gujarat.
The launch marks a milestone in India’s push toward semiconductor self-reliance and has sparked investor optimism around the company’s future growth prospects.
The Rs 7,600 crore investment, spread over five years, will be used to develop two facilities—G1 and G2—in collaboration with Japanese semiconductor giant Renesas Electronics and Thailand-based Stars Microelectronics.
The G1 facility, inaugurated on Aug. 28, is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services, with a peak capacity of 0.5 million units per day. The second unit, G2, is under construction and expected to be completed by the end of 2026, eventually scaling up to 14.5 million units per day.
The scrip rose as much as 2.47% to Rs 687.05 apiece. It pared gains to trade 0.92% higher at Rs 670.10 apiece, as of 09:42 a.m. This compares to a flat NSE Nifty 50 Index. It has fallen 4.38% in the last 12 months. Total traded volume so far in the day stood at 12 times its 30-day average.
The relative strength index was at 49. Out of 12 analysts tracking the company, nine maintain a 'buy' rating and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.3%
