Siemens Limited Board approves demerger of energy business into a separate listed legal entity
Energy

Siemens Limited Board approves demerger of energy business into a separate listed legal entity

Siemens Energy India will provide solutions across the entire energy value chain

  • By ICN Bureau | May 15, 2024

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

Siemens Limited will continue to be a leading technology-focused company in industry, infrastructure and mobility while Siemens Energy India Limited 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 Limited will receive 1 (one) share of Siemens Energy India Limited for every 1 (one) share of Siemens Limited. The new entity will subsequently be listed on the BSE Limited and National Stock Exchange of India Limited. 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.

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."

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