All you need to know about the Siemens demerger

The hive off

Siemens, the Indian arm of the German tech major Siemens AG, is set to demerge its energy business into an independent entity.

What the energy business does

Siemens provides power transmission solutions to several industries through its energy arm.

Demerger details

The demerged entity will be listed on the exchanges as Siemens Energy India. Shareholders of Siemens will receive one share of Siemens Energy for each share held.

Demerger details

Post demerger, promoters will hold 75 per cent of Siemens Energy, and public shareholding will be 25 per cent. The demerger should be complete by 2025.

What led to the demerger

The demerger mirrors the German parent’s strategy. Siemens AG also hived off its global energy business after it accumulated significant losses (Contd).

What led to the demerger

While the Indian energy business is profitable, its revenue grew only 4% between FY19-23 (Contd).

What led to the demerger

The management believes the demerger would lead to more efficient capital allocation, streamline decision-making, and boost growth.

The full story

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