In India, the gas and power business would continue to be a part of the listed company Siemens.
New Delhi: Siemens India’s promoter group rejigged its holding in the company as the German parent Siemens AG transferred 24% stake in the Indian arm to subsidiary Siemens Gas and Power Holding BV in line with the conglomerate’s global strategy.
The overall holding of the parent group remained unchanged at 75%. Last year, Siemens AG announced that it will carve out its gas and power business, which has dragged its overall performance, into a separate subsidiary. Siemens did not demerge the gas and power business in India and instead transferred 24% stake to the holding company for this business.
“The proposed transaction is an inter-se transfer between members of the promoter/promoter group. As disclosed, Siemens Gas and Power Holding BV, a wholly-owned subsidiary of Siemens AG, proposes to acquire 24% of the equity share capital of Siemens Limited, India from Siemens AG,” Siemens India said in an email response to ET’s query.
Shares of Siemens India were trading at Rs 1,019.90 on BSE, up 2.3% from the previous close at 2:50 pm.
In India, the gas and power business would continue to be a part of the listed company Siemens. “The Gas and Power segment in India with its diversified offerings is a significant part of Siemens Limited, India,” the company said. In a note today, Spark Capital said that it has a “structurally positive outlook” on Siemens India in its gas and power segment, though muted spend in the domestic transmission market is aconcern, growth from the industrial steam turbine segment should partially aid growth. The brokerage also sees growth in its digital industries, smart infrastructure, and mobility segment.
“SIEM globally has initiated the process of spinning-off and subsequently listing the Gas & Power business. The process is likely to be completed by Sep’20. The implications of it on the domestic Gas and Power business need to be monitored,” the brokerage said.