Siemens gets nod to demerge energy business into separate legal entity

15 May 2024 Evaluate

Siemens has received approval from Board of Directors for proposal to demerge its Energy Business into a separate legal entity -- Siemens Energy India (currently a wholly owned subsidiary of Siemens). Siemens Energy India will be subsequently listed and will mirror the shareholding of Siemens, upon the receipt of requisite approvals.

Siemens will continue to be a leading technology-focused company in Industry, Infrastructure and Mobility while Siemens Energy India will focus on being the most valued energy technology company supporting its customers in transitioning to a more sustainable world. Siemens Energy India will provide solutions across the entire energy value chain from power and heat generation, transmission to storage through a portfolio that includes conventional and renewable energy technology such as gas and steam turbines, hybrid power plants operated with hydrogen as well as power generators and transformers.

As per the scheme of arrangement, shareholders of Siemens will receive one share of Siemens Energy India for every one share of Siemens. The new entity will subsequently be listed on the BSE and National Stock Exchange of India. The demerger will lead to the creation of two strong and independent entities which are able to better address their respective markets and customers with a more focused approach.

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. The process of demerger, including receipt of requisite approvals, and subsequent listing of Siemens Energy India is expected to be completed in 2025. 

Siemens is a technology powerhouse that has stood for engineering excellence, innovation, quality and reliability. The company focuses on the areas of electrification, automation and digitalization.

Siemens Share Price

6964.15 -13.30 (-0.19%)
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