CG Power and Industrial Solutions Pursues Rs 3,000-Crore QIP for Semiconductor Expansion
Strategic QIP Launch for Semiconductor Expansion
CG Power and Industrial Solutions is gearing up to raise Rs 3,000 crore through a qualified institutional placement (QIP). This move comes as the Murugappa group-owned company seeks to fund acquisitions and enhance its semiconductor capabilities. The company has selected three banks—IIFL, HSBC, and DAM Capital—to lead this funding initiative.
Funding for Growth and Expansion
The board's announcement on October 21 reflects CG Power's ambition to tap into the semiconductor market. The new funding will aid in acquiring strategic assets and expanding its current operations. Additionally, the firm aims to address a growing need for investment in acquisitions, according to managing director and CEO Amar Kaul.
- QIP proceeds to support semiconductor projects.
- Previous acquisition: CG Power’s agreement to acquire Renesas Electronics' radio frequency component business for $36 million.
- OSAT facility investment of Rs 7,600 crore planned over five years.
Market Position and Financial Performance
CG Power's financial performance in Q2 FY25 indicates a 20% rise in revenue, totaling Rs 2,412.7 crore. Despite this growth, the company faced an 8.8% decline in net profit due to increased raw material costs. Presently, CG Power's stock is trading positively, indicating market confidence in its future expansions.
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