IANS | 14 May, 2024
The Board of Directors of Siemens Limited, the Indian subsidiary of
German technology giant Siemens AG, on Tuesday approved the proposal to
demerge its energy business into a separate legal entity – Siemens
Energy India Limited.
The new entity will be subsequently listed and will
mirror the shareholding of Siemens Limited, upon the receipt of
requisite approvals, the company said.
As per the scheme of
arrangement, shareholders of Siemens Limited will receive one share of
Siemens Energy India Limited for every one share of Siemens Limited. The
new entity will subsequently be listed on the BSE Limited and National
Stock Exchange of India Limited, according to a company statement.
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, according to a company
statement.
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 demerger will enable both companies to
pursue their specific strategies, focus on their core portfolios and to
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
Limited is expected to be completed in 2025.
