Shares of CG Power and Industrial Solutions Ltd hit a 20% upper circuit on 22 November after the company announced that it had received approval from the Central government to set up an Outsourced Semiconductor Assembly and Test facility.

In its regulatory filing, the company said that it had filed an application with the Ministry of Electronics and Information Technology to seek approval to set up an Outsourced Semiconductor Assembly and Test facility.

The company is set to invest Rs 6,592 crore in the project over a period of five years, which will be funded by a combination of subsidy, Joint Venture Partners, and debt as required.

It is looking for a grant of subsidy for the setting up of the new facility under the Modified scheme for setting up of Compound Semiconductors and Semiconductor Assembly, Testing, Marking and Packaging or Outsourced Semiconductor Assembly and Test facilities in India.

CG Power has proposed that it will set up the Outsourced Semiconductor Assembly and Test unit as a Joint Venture (JV) in partnership with technology providers and anchor customers.

The company said, “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.”

Earlier, the company announced an expansion of capacity in the switchgear segment.

At 1:55 pm, the shares of CG Power were locked 19.99% higher at Rs 469.35 on NSE.