Siemens Limited has announced that its board has approved a plan to separate its energy business into a new legal entity named Siemens Energy India Limited. This newly formed company will operate as a wholly-owned subsidiary of Siemens and will eventually be listed on the market, with its shareholding structure mirroring that of Siemens.
The multinational conglomerate explains that the demerger will result in two strong and independent entities, each able to focus more effectively on their specific markets and customers. This strategic move is designed to enhance focus and maximize shareholder value for both businesses.
Post-demerger, Siemens Limited will continue to focus on technology-driven areas such as industry, infrastructure, and mobility. On the other hand, Siemens Energy India will concentrate on becoming a leading energy technology company dedicated to supporting its customers in transitioning to a more sustainable global environment.
Siemens Energy India will provide comprehensive solutions across the entire energy value chain. This includes power and heat generation, transmission, and storage, leveraging a broad portfolio that encompasses both conventional and renewable energy technologies. These technologies range from gas and steam turbines to hybrid power plants that utilize hydrogen, along with power generators and transformers.
As per the arrangement scheme, Siemens shareholders will receive one share of Siemens Energy India for each Siemens share they hold. Following this allocation, the new entity will be listed on both the BSE Limited and the NSE Limited.
