CG Power & Industrial Solutions has projected sustained growth in the power transmission sector, with expectations extending until 2029 and potentially further into the future. The company's optimistic outlook is anchored on the government's continued focus on infrastructure development and power generation initiatives.

Growth Drivers and Market Outlook

The company's growth projections are fundamentally supported by government-led infrastructure and power generation initiatives. These programs are expected to create substantial demand for power transmission equipment and solutions throughout the forecast period.

Infrastructure Development Impact

The power transmission sector's anticipated growth aligns with the government's strategic emphasis on expanding and modernizing India's power infrastructure. These initiatives encompass both the development of new transmission networks and the enhancement of existing power generation capabilities.

Sector Positioning

CG Power's forecast reflects confidence in the sustained momentum of India's power sector transformation. The company's assessment indicates that government-backed infrastructure projects will continue to drive demand for power transmission solutions, creating a favorable operating environment for industry participants through the projected timeline.

CG Power & Industrial Solutions has submitted its quarterly compliance report to stock exchanges, confirming no deviation in the utilisation of funds raised through its Qualified Institutions Placement (QIP) for the quarter ended 31st December, 2025. The statement, filed under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, was reviewed by the company's Audit Committee on 27th January, 2026.

QIP Fund Details and Utilisation

The company successfully raised Rs. 3,000 crores through its QIP on 4th July 2025. After adjusting for issue-related expenses of Rs. 26.03 crores including GST, the net proceeds available for utilisation stand at Rs. 2,973.97 crores. As of the quarter ended 31st December, 2025, the company has utilised Rs. 274.37 crores across its planned strategic initiatives.

Fund Allocation and Progress

The QIP proceeds have been allocated across multiple strategic objectives, with the largest allocation directed towards semiconductor operations:

Strategic Investment Focus

The primary focus of fund utilisation has been on the company's semiconductor subsidiary, CG Semi Private Limited, which received Rs. 184.67 crores for establishing an Outsourced Semiconductor Assembly and Test (OSAT) facility. This represents the largest single utilisation from the QIP proceeds during the quarter.

Additionally, Rs. 63.44 crores has been deployed towards setting up a power transformer plant, aligning with the company's core electrical equipment manufacturing business. The company has allocated funds for acquisitions and inorganic growth opportunities, though no utilisation has occurred in this category during the reporting quarter.

Compliance and Monitoring

CARE Ratings Limited serves as the monitoring agency for the QIP fund utilisation. The quarterly statement confirms that there has been no deviation in the objects or purposes for which the funds were raised, no deviation in the amount of funds utilised against original disclosures, and no changes in contract terms from the original fund-raising documents.

The Audit Committee and auditors have provided no adverse comments on the fund utilisation pattern, indicating adherence to the planned deployment strategy outlined during the QIP issuance.