It said the investment is aimed at accelerating the development and commercialisation of EdgeCortix’s energy-efficient AI processing solutions.
CG Power is further deepening its entire value chain of semiconductor designing and manufacturing, and wireless systems across different end-segments. It is building an outsourced semiconductor assembly and test (OSAT) plant in Sanand, Gujarat, with a total investment of ₹7,600 crore over five years.
Last month, brokerage firm UBS raised its price target on CG Power by 7% to ₹900 apiece, while maintaining its “buy” recommendation.
UBS said CG Power is at an inflection point, with the worst of its industrial weakness across orders, margins and rail executions largely behind it. It said the company is well positioned in the power segment and has a timely capacity expansion and improving export visibility.
Post its QIP, CG Power has a strong cash position, which supports its product portfolio expansion, the brokerage added.
CG Power shares gained 4.5% to hit an intraday high of ₹748 apiece on Wednesday. The stock was up 4% at ₹744.9 apiece at 11.25 am. It has gained 16.6% this year, so far.
Also Read: Just Dial shares fall 5% as weakness in growth, unique visitors impacts Q4 results
