Colab Platforms Incorporates Wholly Owned Subsidiary for Semiconductor Expansion; Stock Hits 52-Week High

New Delhi, October 24 – The share of Colab Platforms Ltd (BSE: 542866) has announced the incorporation of a new wholly owned subsidiary: Colab Semiconductor Private Limited. The move is perceived as a critical development as the company aims to enter the country’s booming $52 billion semiconductor and OSAT market. The timing of this update is crucial, as the government is on a roll promoting, marketing, and encouraging semiconductor development and has been trying to create a semiconductor manufacturing ecosystem under the Atmanirbhar Bharat mission.

The company’s stock responded positively, surging 1.99% (₹171.40) and reaching the upper circuit and the 52-week high. The stock reached the level during the early hours and has been stagnant as more than 98% of open trades are purchase orders. The market capitalisation stood at ₹3,496.56 crore, with the scrip under ESM Stage 2 and a P/E ratio exceeding 950x on a standalone basis.

Entry in the Semiconductor Sector of the Country

The newly formed subsidiary will focus on semiconductor manufacturing and OSAT (Outsourced Semiconductor Assembly and Test) operations. Both sectors have recently witnessed policy-driven growth in the country. The size of the semiconductor sector will double by 2030 (to be valued approx. $108 billion), growing at a CAGR of 15%.

The expansion is driven by strong domestic demand across automotive electronics, 5G infrastructure, IoT, smart devices, and data centers. The government’s ₹76,000 crore incentive package under the India Semiconductor Mission further supports this sector, offering capital and design-linked incentives to promote local chip production.

Management Commentary

The top management, represented by Puneet Singh Chandhok (the company’s managing director), stated that the entry into the semiconductor sector is all set to reinforce the company’s status as a multi-sector tech powerhouse. It will be a critical step to unlock the company’s multi-decade growth potential and will be crucial to strengthening the country’s technology sovereignty.

Stock Price Movement

At 03:15 PM, the stock is trading at ₹171.40, up 1.99% from the previous close. It has reached its 52-week high at the current price level, reflecting strong momentum from its low of ₹5.69. Operating under Other Financial Services, it shows healthy ROE/PB ratios (15.96 / 154.41), suggesting active investor interest despite earnings pressure.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/06a2c318-f4f5-4b57-ad06-a3ef43311070.pdf

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