Siemens to demerge energy business
For the financial year 2022, new orders in the energy business increased by 21.8 per cent to Rs 6231.4 crore.
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Shares of Siemens soared nearly 6 per cent to Rs 4,139.45 on the BSE on Monday. (Image source: Wikipedia)The board of Siemens Ltd has approved the incorporation of a wholly-owned subsidiary in India to execute a proposed demerger process of its energy business.
In a regulatory filing on Monday, the company said certain promoters — namely Siemens Aktiengesellschaft, Germany, Siemens International Holding BV and Siemens Energy Holding BV, and also its ultimate parent company Siemens Energy Aktiengesellschaft — have each requested the board of directors of the Siemens to consider, evaluate and thereafter, start taking exploratory steps towards a potential demerger of its energy business into a separate entity.
Shares of Siemens soared nearly 6 per cent to Rs 4,139.45 on the BSE on Monday. It hit a new life-time high at 4,244.55 in intra-day deals after the company announced its plan to consider demerger of its energy business into a separate entity.
“The board, at its meeting held today, took note of the above and authorized the company’s management to commence exploratory steps as may be required to examine a potential demerger of the Company’s energy business, which will be subject to further consideration and deliberation to be carried out by the board,” it said.
Further, the board has approved the immediate incorporation of a wholly owned subsidiary in Mumbai on the basis that the proposed subsidiary may be required if and when the board decides to implement the demerger, it said.
For the financial year 2022, new orders in the energy business increased by 21.8 per cent to Rs 6231.4 crore. Sales (excluding other operating revenues) increased by 13.0 per cent to Rs 5298.5 crore, while profit from operations was Rs 564.8 crore compared to Rs 591.8 crore in the previous year.
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