CG Power and Industrial Solutions Stocks Skyrocket by 28% in Just 2 Days Amid Push for Approval to Establish Semiconductor Assembly and Test Facility

In an entertaining twist of financial events, CG Power and Industrial Solutions decided to spice things up by extending its rally for the second consecutive day, gaining over 6 percent on November 23.

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CG Power and Industrial Solutions’ Stellar Stock Rally

The company, not one to shy away from the limelight, filed an application to set up an outsourced semiconductor assembly and test facility in India, throwing in a whopping $791 million investment over the next five years. Talk about making an entrance!

The company, eager to share its grand plans, issued a statement to the stock exchange, where they spilled the beans about the application to the Ministry of Electronics and Information Technology. Why keep it a secret, right? They’re even seeking subsidies for this ambitious project, because who doesn’t love a good discount?

Intriguing Investment Move: CG Power and Industrial Solutions’ $791 Million Splash

“We wish to inform you that the Company has today filed an application with Ministry of Electronics and Information Technology (MeitY), Government of India seeking approval to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility and the grant of subsidy for the said project under the modified scheme for setting up of compound semiconductors/silicon photonics/sensors fab/discrete semiconductors fab and semiconductor assembly, testing, marking, and packaging (ATMP) facilities in India,” the company stated in the exchange filing. Phew, that’s a mouthful.

Shareholder Delight: CG Power and Industrial Solutions’ 20% Leap to 52-Week High

As expected, the company’s shares leaped about 20 percent to Rs 469, hitting a 52-week high. That’s right; they’re reaching for the stars, or at least the 52-week high, which is basically the stock market’s version of stardom. Now, here’s the juicy part: the company spilled the beans on how they plan to fund this extravagant project.

Funding the Future: CG Power and Industrial Solutions’ Multifaceted Approach

Brace yourself—it’s going to be a mix of subsidy, joint venture (JV) partners’ equity contribution, and debt, as required. It’s like planning a grand party and making sure everyone chips in for the cake. But wait, there’s more! The discussion for the funding is still underway. It’s like watching a suspenseful movie; we can’t wait to see how it unfolds.

Semiconductor Saga: CG Power and Industrial Solutions Amid India’s Mission

In a plot twist that could rival any blockbuster, India’s Semiconductor Mission, launched in 2021, has attracted a star-studded lineup of companies and joint ventures expressing their intent to set up semiconductor assembly and fabrication units. We’re talking about big names like Tata Group, Vedanta, Foxconn, TSMC, L&T, Qualcomm, Micron Technology, Simmtech, Sahasra Semiconductor, and AMD. It’s like assembling the Avengers, but for semiconductors.

Breaking Down CG Power and Industrial Solutions’ Application to MeitY

Now, here’s the cliffhanger: experts are throwing shade on whether these units, once established, will be more into the assembly business rather than the manufacturing of semiconductors in India. It’s like planning a gourmet dinner and ending up with takeout. Will the purpose of the Mission be fulfilled? Only time will tell. Stay tuned for the next episode of “Semiconductor Saga”!