CG Power and Industrial Solutions' subsidiary, Axiro Semiconductor, will acquire Tosil Systems for Rs 16.44 crore. This move aims to bolster CG Power's semiconductor design capabilities.
CG Power Subsidiary to Acquire Tosil Systems for Rs 16.44 Crore
CG Power and Industrial Solutions Ltd's wholly owned subsidiary, Axiro Semiconductor Private Limited, has agreed to acquire 100% of Tosil Systems Private Limited for Rs 16.44 crore in cash. Reader Takeaway: acquisition bolsters semiconductor capabilities; integration will be key. ## What just happened Axiro Semiconductor Private Limited entered a definitive agreement to buy all shares of Tosil Systems Private Limited. The deal is for a cash consideration of Rs 16.44 crore. ## Why this matters This acquisition is expected to enhance CG Power's semiconductor design services. Tosil Systems specializes in silicon design, verification, physical implementation, and embedded software development, which will complement CG Power's current semiconductor business offerings. ## The backstory Tosil Systems Private Limited was established in 2017 and offers embedded engineering services, including silicon design and Edge AI engineering, to global semiconductor and electronics OEMs. Its turnover was Rs 6.95 crore in the year ended March 31, 2024, rising to Rs 11.12 crore by March 31, 2025, and Rs 11.94 crore by March 31, 2026 (projected). ## What changes now The integration of Tosil's embedded and silicon engineering services is expected to strengthen CG Power's semiconductor division. The transaction is an arm's length deal and is anticipated to close by August 31, 2026. ## Risks to watch Successful integration of Tosil's operations and talent into CG Power's existing structure will be crucial for realizing the strategic benefits of the acquisition. ## Peer comparison CG Power operates in the industrial and power solutions sector. Acquisitions in the semiconductor services space are common as companies seek to expand their specialized engineering capabilities. ## Context metrics (time-bound) Tosil Systems' turnover grew from Rs 6.95 crore in FY24 to a projected Rs 11.94 crore by FY26. ## What to track next Investors will monitor the progress of the acquisition and how effectively Tosil's capabilities are integrated into CG Power's operations to drive growth in the semiconductor segment.
