Latest news with #CGPower
Hans India
5 days ago
- Business
- Hans India
SBI gets 4x bids for Rs 20,000-cr QIP
New Delhi: Qualified institutional placements (QIPs) witnessed a resilient growth in July so far, led by State Bank of India's (SBI) recent fundraise, taking the total QIP fundraising to a five-year high of over Rs30,000 crore. QIPs are a way for listed companies to raise capital without having to submit legal paperwork to market regulators. Ten issuances have offered over Rs30,470 crore so far this month. It is the biggest monthly performance of QIPs since September 2020, when companies had collectively raised over Rs39,000 crore. Driving this surge was the State Bank of India's (SBI) historic QIP on July 17, which mobilised over Rs20,000 crore. The offering drew robust investor interest, with demand reportedly outstripping supply by nearly four times. According to multiple reports, the SBI QIP has received significant interest from global and domestic investors worth around Rs1 lakh crore. July also saw a flurry of other notable QIP deals. CG Power raised over Rs3,000 crore, while Marathon Nextgen and Navin Fluorine collected Rs900 crore and Rs750 crore, respectively. Several other mid- and small-cap firms also tapped into institutional funding during the month. The fundraising momentum in 2025 has remained strong beyond July. In the year so far, Biocon raised Rs4,500 crore through a QIP, followed by Hitachi Energy (Rs2,500 crore), IREDA (Rs2,000 crore), UCO Bank (Rs2,000 cr), and Capri Global Capital (Rs2,000 cr). In June alone, seven companies together raised over Rs14,000 crore. Altogether, 30 companies have raised close to Rs60,000 crore via QIPs so far in 2025. This shows the robust activity seen in 2024, when 95 firms mopped up more than Rs1.37 lakh crore.
Hans India
5 days ago
- Business
- Hans India
QIP fundraising hits 5-year high, SBI's Rs 20,000 crore issue receives 4 times bids
New Delhi: Qualified institutional placements (QIPs) witnessed a resilient growth in July so far, led by State Bank of India's (SBI) recent fundraise, taking the total QIP fundraising to a five-year high of over Rs 30,000 crore. QIPs are a way for listed companies to raise capital without having to submit legal paperwork to market regulators. Ten issuances have offered over Rs 30,470 crore so far this month. It is the biggest monthly performance of QIPs since September 2020, when companies had collectively raised over Rs 39,000 crore. Driving this surge was the State Bank of India's (SBI) historic QIP on July 17, which mobilised over Rs 20,000 crore. The offering drew robust investor interest, with demand reportedly outstripping supply by nearly four times. According to multiple reports, the SBI QIP has received significant interest from global and domestic investors worth around Rs 1 lakh crore. July also saw a flurry of other notable QIP deals. CG Power raised over Rs 3,000 crore, while Marathon Nextgen and Navin Fluorine collected Rs 900 crore and Rs 750 crore, respectively. Several other mid- and small-cap firms also tapped into institutional funding during the month. The fundraising momentum in 2025 has remained strong beyond July. In the year so far, Biocon raised Rs 4,500 crore through a QIP, followed by Hitachi Energy (Rs 2,500 crore), IREDA (Rs 2,000 crore), UCO Bank (Rs 2,000 crore), and Capri Global Capital (Rs 2,000 crore). In June alone, seven companies together raised over Rs 14,000 crore. Altogether, 30 companies have raised close to Rs 60,000 crore via QIPs so far in 2025. This shows the robust activity seen in 2024, when 95 firms mopped up more than Rs 1.37 lakh crore. The SBI fixed the floor price at Rs 811.05 per equity share for its Rs 20,000 crore bonds after the board of directors approved the proposal to raise the amount through issuing bonds to domestic investors.
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Business Standard
6 days ago
- Automotive
- Business Standard
India needs to develop a broader semiconductor ecosystem over time: Subbiah
Murugappa Group scion says India needs a China-style sectoral roadmap for growth, bets big on semiconductors and EVs premium Shine Jacob Chennai Listen to This Article Vellayan Subbiah, a fourth-generation Murugappa group scion and chairman of CG Power, executive vice-chairman of Tube Investments of India (TII), and chairman of Cholamandalam Investment and Finance Co, believes India should take a cue from China and identify key sectors that can drive manufacturing growth. In a video interview with Shine Jacob, he talks about the group's semiconductor foray, the role of electric vehicles (EVs) in the country's future, and the need for a push towards India being a product nation. Edited excerpts:
Economic Times
01-07-2025
- Business
- Economic Times
EMS has huge growth prospects for next five years; 5 direct & ancillary plays to bet on: Narendra Solanki
Narendra Solanki, Head Fundamental Research-Investment Services, Anand Rathi Shares, says India's Electronic Manufacturing Services (EMS) sector is poised for substantial growth. Consumption of electronic goods is expected to triple by FY28. EMS share will also increase significantly. Government support is boosting chip manufacturing and ODM. Supply chain shifts from China are underway. New manufacturing plants are being established, focusing initially on high-volume, low-margin products but gradually shifting to high volume, low margin businesses. Further, Solanki says among EMS companies, likes three direct plays like Kaynes, Dixon Technologies and CG Power. In terms of ancillary plays, also likes PG Electroplast and Epack Durable. The India EMS sector some projections say that for the next five years or till FY28, the CAGR growth stands at close to 34%. What as per you will drive this hyper growth phase for this industry and how do you see the growth panning out in the years ahead? Narendra Solanki: Definitely, there is a huge growth prospect for EMS companies in India. If you see the existing numbers, we have currently almost 10 trillion consumption of electronic goods in India which is expected to grow to 30 trillion, of which EMS right now has around 3.5 trillion share, which is also expected to rise to 9 trillion by FY28. So, the CAGR is approximately 30% plus. So, definitely, as an industry we see huge growth prospects for the next five years. Import is expected to decline and export expected to surge. With the support of the government, a lot of companies have also set up different facilities, like chip manufacturing facilities or facilities. Even the ODM, design development and manufacturing, is also picking up pace. There has been a lot of growth available for most of the companies in different areas – be it product design development, outsourcing, manufacturing, contract manufacturing, as well as after sales service space is also opening up with a lot of these companies making inroads into different aspects of this sector. The sector is in a high growth phase and we would expect it to have high growth for the next five to seven years. The other thing I also wanted to figure out was the China factor because that is not helping growth. How are Indian firms emerging as credible alternatives as of date? Narendra Solanki: As far as supply chain shifts related to China are happening, it would be a slow process, but definitely things have started moving. There are already six manufacturing plants coming out including one from Tata Electronics, one from CG Power facility and one from Kaynes. Four of these plants are coming up in Gujarat. So, a lot of these facilities have started to come up. Initially, we expected things would start from high volume and low margin chips and then gradually we would pick up into low volume and high margin chips, which would be less than 30 nm chips. So, right now, we are trying to build capacities ranging from 28 nm to 45-50 nm kind of chips and gradually, we will improve over the next few years. So, definitely within the next five to seven years, we would see a significantly greater shift from China happening, but initially, we would start off with high volume, low margin products and gradually start shifting. We would see shifts happening for high margin and lower volume products as well. Kaynes keeps on diluting. The Dixon promoter has just about sold out. Why are some of these growing EMS companies hitting the market either with a stake sale or a QIP or a fundraise? Narendra Solanki: As a technology, all these businesses are very capital intensive and initially you need to have very high capital cost to set up these facilities. For a chip manufacturing facility, you have to have efficiency of more than 90% and even in some cases you have to have efficiency of 95% to 98% in order to just breakeven. So, if you need that kind of a high capital intensity and that kind of efficiency, it becomes very difficult to find the capital and hence initially, they have to raise a huge amount and then invest into acquiring technologies and building partnerships in order to secure long-term customers and to achieve the returns. Which is your favourite in terms of pecking order? Is it Kaynes? Is it Dixon? Is it Amber? Which is your preferred bet? Narendra Solanki: It depends on the kind of exposure. We like Kaynes right now. We like Dixon Technologies as well and CG Power. These three are the direct plays which we like and in terms of ancillary plays, we also like PG Electroplast and Epack Durable. Some would argue that while EMS is growing, where are the margins? Margins are 2%, 3% on a net level. That means it is one of those businesses, where the top line is great, but on the bottom line, either there is a huge currency risk, or a huge client risk. If margins are 2-3%, that is not a great business to be in. Narendra Solanki: That is what I have said. Initially when we have to start, it has to be high volume, low margin products and gradually when we build up our technologies and ramp up our scale and efficiency, then gradually we would see that all these high volume, low margin business would start converting into a low volume and high margin businesses and gradually will pick up from there. So, this is the transition we have to make and it would take around two to three years and when that transition happens, we would see margins improving significantly for these companies. I believe you retain a buy call on Dixon Technologies, with a target price of over Rs 18,000. But some of the reports recently suggest that one of their biggest clients – Motorola – is now diversifying in terms of their suppliers. Firstly, it was only Dixon Tech, but some of the other companies are now getting into the foray and will be supplying to Motorola as well. What is your take on this particular news flow? Will it change anything for Dixon Technologies? Narendra Solanki: Not immediately because they have other strategies as well. They have partnerships into camara modules, lithium-ion batteries as well, which is coming up. A lot of different business would come up for Dixon and we do not see any immediate threat in the near term from this. What is the right PE multiples to look at these businesses? 50, 60 are the PE multiples in the sector now. I can say that the growth is great, but the stock prices are priced to perfection? Narendra Solanki: In the case of Dixon, we model in around 45% CAGR for the next two years and if you factor that in, the valuations with such high growth would adjust significantly and the PE would also come lower. So, right now, it could be around 54-52 PE for FY27 and with such high growth, I think it is still at a decent stage and gradually the margins will also improve going ahead as within two to three years, we will transition from low margin to high margin business.
Time of India
01-07-2025
- Business
- Time of India
CG Power shares in focus as company plans to raise Rs 3,000 crore via QIP
CG Power and Industrial Solutions shares will be in focus on Tuesday after the company announced plans to raise around Rs 3,000 crore through a Qualified Institutional Placement (QIP), CNBC-TV18 reported on June 30. The QIP is expected to be priced at approximately Rs 660 per share, nearly 3.25% below Monday's closing price, according to sources. DAM Capital Advisors , IIFL Capital, and HSBC Securities are managing the issue. The fundraising move comes shortly after CG Power secured a Rs 641 crore order from Power Grid Corporation of India Ltd (PGCIL) for the supply and servicing of a 765kV Transformer Package (7TR-12 Bulk). This marks the largest single order in the company's history. The order is expected to be fulfilled over 18 to 36 months, the company said in a stock exchange filing. CG Power, a part of the Murugappa Group, reported consolidated revenues of Rs 9,909 crore in FY25 and continues to expand across industrial systems, power solutions, and consumer appliances. While details on the equity dilution or prospective institutional buyers are not yet disclosed, the QIP is expected to support the company's long-term growth and expansion plans. Also Read: Top 10 Nifty500 stocks with dividend yields higher than industry average CG Power Share Price Target According to Trendlyne, the average target price for CG Power stands at Rs 720, implying a potential upside of about 6% from current levels. Of the 12 analysts tracking the stock, the consensus rating is 'Buy'. From a technical standpoint, the Relative Strength Index (RSI) is at 51.9, indicating neutral momentum. The MACD is at 4.0—above its center line but below the signal line. Also Read: Street Favourite! 10 Nifty micro-cap stocks analysts expect to rally up to 60% ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
