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CG Power and Industrial Solutions hit the upper circuit of 20 per cent on Wednesday after it announced a foray into semiconductor assembly at a cost of $791 million.

CG Power stocks is up 19.99 per cent on BSE at 469. The company’s market cap is Rs 71,629 crore.

CG Power has filed an application with the Union Ministry of Electronics and Information Technology (MeitY) seeking approval to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility and the 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.

It may be further noted that, subject to the project and the subsidy being approved, 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 said.