Siemens Limited on Tuesday through an exchange filing announced that its Board of Directors has approved the proposal to demerger its Energy Business into a new company, Siemens Energy India Limited (currently a wholly owned subsidiary of Siemens Limited).
Demerger of Energy Business
Once the demerger is complete, the Siemens Energy India will be listed on the stock market and the shares of the new company will mirror the same ownership structure as Siemens Limited, meaning that the existing shareholders of the Siemens Limited will have equivalent shares in Siemens Energy India Limited.
According to the scheme of arrangement approved by the Board of Directors, the shareholders of Siemens Limited will receive 1 share of Siemens Energy India for every one share that hold in Siemens Limited. The new entity will be listed on both the BSE and the NSE.
Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited, said, “Siemens Energy India Limited and Siemens Limited will script new paths as two independent, publicly-listed companies. The underlying market drivers and capital allocation requirements are fundamentally different in the energy business compared to the industrial business."
"The demerger will enable both companies to pursue their specific strategies, focus on their core portfolios and take decisions on capital allocation. This will enable the full value of each of the businesses to be unlocked for the benefit of the shareholders,” he added.
As per the regulatory filing, the company added that the the process of demerger, including receipt of requisite approvals, and subsequent listing of Siemens Energy India Limited is expected to be completed in 2025.
Siemens Limited shares
Shares of Siemens Ltd on Tuesday |
The shares of the company on Tuesday at 3:30 PM IST closed at Rs 6,690.00, up by 1.06 per cent.
