CG Power and Industrial Solutions shares surged 3.56 per cent to ₹719 in Monday morning trade, following the inauguration of subsidiary CG Semi’s semiconductor assembly and test facility in Sanand, Gujarat on August 28. The stock touched an intraday high of ₹726.20, with heavy volumes of 96.22 lakh shares traded by 11.40 AM.
The facility launch has drawn significant analyst attention, with Morgan Stanley initiating coverage on CG Power with an ‘Overweight’ rating and target price of ₹799. The brokerage highlighted the company’s diversified capital goods portfolio and strong positioning in power systems and emerging semiconductor sectors.
CG Semi’s ₹7,600 crore investment represents one of India’s first full-service Outsourced Semiconductor Assembly and Test (OSAT) facilities. The G1 facility will operate at 0.5 million units per day capacity, with commercial production expected to begin in 2026. A second facility (G2) under construction will scale capacity to 14.5 million units daily by end-2026, creating over 5,000 jobs.
Industry body ICEA Chairman Pankaj Mohindroo welcomed the development, stating it “marks a new era for hi-tech manufacturing” and signals “India’s growing technological sovereignty.” The facility is part of India’s semiconductor mission to achieve self-reliance in chip manufacturing.
Morgan Stanley projects strong growth for CG Power’s segments, forecasting 14 per cent revenue CAGR for industrials and 35 per cent for power systems through FY28. The semiconductor venture is expected to achieve peak asset turns of 1.9x by FY31.
CG Semi, a joint venture with Renesas Electronics and Stars Microelectronics, will serve automotive, defense, infrastructure and IoT applications. The facility has undergone ISO certifications and features advanced manufacturing execution systems for automation and traceability.
The stock has gained significantly from its 52-week low of ₹517.70 in April, though it remains below the October 2024 high of ₹874.70. With a market capitalization of ₹1.13 lakh crore, CG Power trades at 18.26 per cent margin rate.
Published on September 1, 2025