Shares of CG Power and Industrial Solutions Ltd zoomed 20% today after the firm said it has filed an application with Ministry of Electronics and Information Technology (MeitY), seeking approval to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility. CG Power stock opened flat at Rs 390.85 on BSE. Later, the stock hit a record high of Rs 469, rising 20% after the company made the announcement.
Market cap of the firm rose to Rs 71,629 crore on BSE.
The stock hit its 52-week low of Rs 245.55 on December 23, 2022. Total 7.20 lakh shares of the firm changed hands amounting to a turnover of Rs 32.78 crore in Wednesday’s session.
In terms of technicals, the relative strength index (RSI) of CG Power stands at 48.9, signaling it's trading neither in the overbought nor in the oversold zone. CG Power stock has a one-year beta of 0.1, indicating low volatility during the period. CG Power shares stand higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
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The firm has also applied for 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)/ Outsourced Semiconductor Assembly and Test (OSAT) facilities in India, said CG Power.
The company proposes to implement the same as a Joint Venture in partnership with technology providers/anchor customers, which are under discussion. The estimated investment on the project over a period of five years is $791 million and the same is expected to be funded by a combination of subsidy, JV Partners equity contribution and debt, as required
CG Power is engaged in the providing end-to-end solutions to utilities, industries and consumers for the management and application of electrical energy. The company offers products, services and solutions through two segments: Power Systems and Industrial Systems. Its power systems segment includes transformers, switchgear, automation and turnkey projects. Its industrial systems segment includes electric motors, alternators, drives, traction electronics and supervisory control and data acquisition systems (SCADA).
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