CG Power share price gained in intraday deals on Wednesday, September 3, extending its winning run to the fourth straight session today. During this period, the multibagger stock has risen nearly 14%.
CG Power share price hit a high of ₹757.20 in trade today on the BSE, up 2.41%, despite a muted sentiment in the Indian stock market. Over the longer time frame, the Murugappa Group stock has emerged as a multibagger, delivering returns of as much as 3029% in five years.
What’s behind rally in CG Power shares?
The rally in CG Power shares, which started on August 29, came on the back of the company’s update about the launch of its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, by its subsidiary CG Semi.
CG Power, in an exchange filing, post-market hours on August 28, said, “With this launch, CG Semi becomes one of India’s first full-service OSAT providers, offering solutions across both traditional and advanced packaging technologies. This marks a major step in strengthening India’s semiconductor capabilities and supporting the country’s goal of becoming self-reliant while also serving global markets.”
The company further added that this project, backed by the central and state governments, and in collaboration with Renesas and Stars Microelectronics, would involve CG Semi investing over ₹7,600 crore (~$870 million) over five years to develop two state-of-the-art facilities (G1 and G2) in Sanand, Gujarat.
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