Izmo rises 4% on company's plans to expand into semiconductor packaging

Izmo has outlined a "dual-engine" expansion strategy that uses its profitable automotive SaaS and digital businesses to fund a scale-up in advanced semiconductor packaging

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Izmo shares rose 4.2 per cent on the BSE, logging an intra-day high at ₹936 per share. The buying on the counter came after the company announced its plans to expand into semiconductor packaging and optoelectronic solutions.

 

At 11:23 AM, Izmo’s share price was trading 4.2 per cent higher at ₹935.9 per share on BSE. In comparison, the BSE Sensex was up 0.18 per cent at 85,862.35.

 

The company has a total market capitalisation of ₹1,393.83 crore. Its 52-week high was at ₹1,380 and 52-week low was at ₹231.3.  

 

The company, in its "Strategic Expansion Project Plan Presentation" introduced Izmo Microsystems – an advanced semiconductor packaging unit with a focus on silicon photonics and high-performance packaging for artificial intelligence (AI)/data centres.

 

With this expansion, the company plans to move into silicon photonics packaging and manufacture optical transceivers used in AI data centers, telecom and high-speed networks.  ALSO READ | Lenskart jumps 5% post Q2 results; analyst sees stock 'fully priced' 

Izmo has outlined a “dual-engine” expansion strategy that uses its profitable automotive SaaS and digital businesses (izmoauto, izmostock, FrogData) to fund a scale-up in advanced semiconductor packaging, with a sharp focus on silicon photonics and optical transceivers for AI and data centers. 

 

Through its izmomicro unit, the company is building out a state-of-the-art packaging facility in India, targeting high-speed, low-power 400G modules (scalable to 800G and 1.6T) in a global optical transceiver market expected to nearly double by 2030, and an Indian market where 400G demand is seen growing over 30 per cent annually. 

 

Unlike large domestic peers chasing high-volume, lower-margin general packaging, IZMO is positioning itself in a high-complexity, high-margin niche, backed by a DSIR-recognised R&D unit and an exclusive MeitY-funded partnership with IIT Madras’ CPPICS for silicon photonics and Field Programmable Photonic Gate Array (FPPGA) development, according to the filing.  ALSO READ | Here's why Dynamic Cables share price is buzzing in trade on December 1 

The company plans to raise up to ₹200 crore via equity instruments to fund specialised equipment and research and development (R&D), launch optical transceivers with an established partner in Q1 FY26, and expand sales across India, APAC and Europe, while continuing to grow its core SaaS platforms and AI-driven analytics offerings to provide stable cash flows that support this deep-tech expansion.

 

Izmo is a pioneer in the automotive retail space, with a trail blazing legacy of innovative products that define standards in the market - from the izmoToolkit in 2002 to the izmoweb platform. Izmo offerings include full-featured interactive online stores, car animation and graphics, comprehensive online marketing programs, sales performance coaching, OEM certified CRM and ILM Solutions, and online service management solutions, among other products.