Semiconductor stock hits 5% upper circuit after Govt approves ₹618 Cr incentive

This small-cap semiconductor stock specializes in manufacturing semiconductor devices, including diodes, thyristors, power modules, and high-power equipment for various industrial applications, hit a 5 percent upper circuit after receiving government approval of Rs. 618 crore incentive for silicon carbide (SiC) semiconductor manufacturing plant in Bhubaneswar.

Stock Price Movement

With a market capitalization of Rs. 1,989.91 crores, the shares of RIR Power Electronics Limited’s stock hit a 5 upper circuit of Rs. 2,593.15 per share on Wednesday, up from its previous closing price of Rs. 2,469.70 per share.

What Happened

The Government of Odisha has approved a customized incentive package for RIR Power Electronics Limited, under the Odisha Semiconductor Manufacturing and Fabless Policy 2023. This approval supports the company’s plan to establish a silicon carbide (SiC) semiconductor manufacturing plant with an investment of Rs. 618 crores in Bhubaneswar. 

Additionally, this initiative strengthens RIR Power Electronics Limited’s position in the semiconductor industry, enhances production capacity, and boosts technological innovation. The incentives will help reduce costs, improve competitiveness, and drive long-term growth, making RIR a key player in India’s semiconductor sector.

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Facilities and Technology

RIR Power Electronics operates a 40,000 sq. ft. manufacturing facility in Halol, Gujarat, equipped for die fabrication, soldering, encapsulation, and testing. The company has a technological partnership with International Rectifier, USA, enhancing its manufacturing capabilities.

Products and services

The company offers a variety of semiconductor products for industrial applications, including rectifier diodes, phase control thyristors, inverter-grade thyristors, power modules, diode bridge rectifiers, customized high-power rectifiers, battery chargers, railway equipment, and IGBT stacks. The company handles bulk orders and exports globally, including to the USA and Europe.

Recent quarter results

RIR Power Electronics Limited’s revenue has increased from Rs. 16.61 crore in Q2 FY24 to Rs. 18.82 crore in Q2 FY25, which has grown by 13.31 percent. The net profit has dropped by 23.12 percent from Rs. 1.99 crore in Q2 FY24 to Rs. 1.53 crore in Q2 FY25.

Written By – Nikhil Naik

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