CG Power surges 11% as JV to set up Rs 7,600-cr semiconductor unit

Shares of CG Power and Industrial Solutions (CG) surged 11 per cent to Rs 494.40 in Friday’s intraday trade amid heavy volumes, after the company said that it will build an outsourced semiconductor assembly and test facility in India in association with Industrial Solutions Limited, Renesas, and Stars Microelectronics.

The joint venture (JV) will be 92.3 per cent owned by CG, with Renesas, and Stars Microelectronics holding equity capital of approximately 6.8 per cent and 0.9 per cent, respectively. The JV plans to invest Rs 7,600 crore over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as required, the company said in an exchange filing.