Shares of Kaynes Technology India Ltd. rallied by 8%, reaching a day’s high of Rs 5,050 on 3rd September, after the Central government approved the company’s chip proposal under the semiconductor scheme.

The Cabinet approved a Rs 3,300 crore proposal by Kaynes Tech to establish a semiconductor packaging plant capable of producing 60 lakh chips daily, Union Minister Ashwini Vaishnaw announced on 2nd September.

The proposed facility will be located in Sanand, Gujarat, where two other chipmaking projects have been approved under the Rs 76,000 crore India Semiconductor Mission.

“The Cabinet has approved Kaynes’ plant with a capacity of 6.3 million chips per day. The plant will be built on 46 acres; it is a large facility, and a significant portion of the production is already booked for Kaynes Industries,” the minister said.

The chips produced at this unit will be used in various applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile devices.

The stock has surged 150% in the past 12 months, doubling investors’ wealth and outperforming the Nifty 50 index, which gained around 30% in the same period.

The company’s market capitalisation rose to Rs 31,236 crore.

At 11:46 AM, the shares of Kaynes Tech were trading 4.36% higher at Rs 4,865.80 on NSE.

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