CG Power picks 3 banks for Rs 3,000-crore QIP; launch likely by December-end

The company is planning to use the QIP proceeds to fund acquisitions and its capex plans including its semiconductor foray

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

The Murugappa group-owned CG Power and Industrial Solutions has picked three investment banks — IIFL, HSBC and DAM Capital — to help the company raise Rs 3,000 crore through a qualified institutional placement (QIP) offering, sources told Moneycontrol.

The CG Power board announced on October 21 that it intends to raise up to Rs 3,500 crore through a QIP. 

“CG Power has started work on the QIP and they are looking at launching the deal before the end of December,” said one of the people cited above.

The energy solutions provider plans to use the QIP proceeds to fund acquisitions and its capex plans, including its semiconductor foray.

The sources added the company hadn't finetuned the fund allocation details. It has also not called for a shareholder vote on the fundraising plan, so far.

“The postal ballot process for shareholder approval takes 30 days. The company is hoping to complete these formalities in time to launch the deal sometime in the second half of December,” the source said.

CG Power had not responded to Moneycontrol’s emailed queries at the time of the publishing this article.

In a post-earnings call on October 21, CG Power managing director and chief executive officer Amar Kaul said in spite of the company generating cash, it would still need “more and more money” for acquisitions it was undertaking and its expansion plans.

Acquisitions, expansion plans

On October 5, CG Power announced a definitive agreement to acquire the radio frequency components business of Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, for $36 million.

The acquisition would enable the company to enter the semiconductor design business, it said. CG Power would acquire intellectual property, tangible assets and select transferring employees across various functions such as semiconductor design, marketing and applications related to the radio frequency components business.

In March, the company announced its foray into the semiconductors business through a joint venture with two foreign entities to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility involving an investment of Rs 7,600 core over five years.

Also Read: CG Power and Industrial Solutions expects OSAT business to generate revenues in next 4 years: MD

In Q2, CG Power also completed the acquisition of GG Tronics India Pvt Ltd (GGT) by picking up a 55 percent stake for Rs 319 crore to bolster its railways business.

GGT has received a developmental order of Rs 4 crore towards Locomotive Train collision avoidance system, also known as Kavach. The work is to be completed within nine to 10 months, the company said in its Q2 earnings release.

CG Power also announced a further expansion of its transformer manufacturing capacity by 5,000 megavolt-amperes (MVA), in addition to its ongoing expansion of 10,000 MVA, which will increase its transformer business capacity to 40,000 MVA.

Q2 FY25 earnings

CG Powers' September quarter revenue rose 20 percent to Rs 2,412.7 crore on healthy sales of motors, transformers, automation systems and smart grid solutions.

Its consolidated net profit declined 8.8 amid a surge in the cost of raw material expenses. The company booked a profit of Rs 220.96 crore in the second quarter against Rs 242.20 crore in the same quarter of the previous year.

At 2.27 pm, the CG Power stock was trading at Rs 721.95 on the National Stock Exchange,  up 0.80 percent from the previous close.