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

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

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.

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.

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

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

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

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