Shares of Cyient Ltd jumped over 5% in Tuesday’s trade after the company announced the launch of its wholly-owned subsidiary, Cyient Semiconductors, to tap into the booming $2 trillion global semiconductor market. The stock surged 5.06% to Rs 1,177.95 on the NSE as of 1:12 PM, gaining Rs 56.75 from its previous close of Rs 1,121.20. It traded in a range of Rs 1,140.50 to Rs 1,182.60, taking the company’s market cap to Rs 12,906 crore.

In a notable bulk deal, HDFC Mutual Fund purchased 6,23,896 shares at an average price of ₹1,099, acquiring a 0.56% equity stake in Cyient. Meanwhile, NWBP AS DP OF FIRST STATE INDIAN SUBCONT FUND offloaded 6,79,655 shares at ₹1,099.72 per share, indicating a partial exit.

Cyient’s latest move involves setting up Cyient Semiconductors to focus on end-to-end Application-Specific Integrated Circuit (ASIC) turnkey solutions and IC design services across sectors such as data centers, automotive, healthcare, and industrial automation. This expansion aligns with India’s semiconductor mission to enhance domestic chip design capabilities.

Krishna Bodanapu, Executive Vice Chairman and Managing Director, stated, “Our vision is to align Cyient’s semiconductor capabilities with the national agenda. This subsidiary will drive innovation and help build India’s semiconductor ecosystem.”

Cyient has also appointed Suman Narayan, a seasoned industry expert, as CEO of Cyient Semiconductors to lead this ambitious venture. With teams spread across India, the U.S., Europe, and Taiwan, the company is positioned to serve a growing global demand for fabless, high-performance silicon solutions.

The stock rally reflects investor confidence in Cyient’s strategic direction and its potential to drive long-term value.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.