Siemens extends fall on board nod for sale of mobility, rail traction ops

The stock dipped 3% to Rs 1,159 on Friday in intra-day trade, extending its Thursday's 4% fall on the BSE.

Siemens dipped 3% to Rs 1,159 in intra-day trade on Friday, extending its 4% fall on Thusday, in otherwise firm market after the company said its board approved to sell its mobility division and rail traction drives business.

“The mobility division accounts for 10.46% of the turnover and 2.82% of the capital employed of the company for the year ended September 30, 2017,” Siemens said in a regulatory filing on February 21, after market hours.

Following a global announcement made by Siemens AG, Germany (parent company of Siemens) to set up a standalone company for the mechanical drives business, the board of directors of the company has agreed in-principle to terms and conditions to determined, to sell its mechanical drives business (included in Process Industries and Drives Division) to Siemens AG or its subsidiary, it added.

At 01:31 pm; the stock was trading 2.6% at Rs 1,170 on the BSE, as compared to 0.94% rise in the S&P BSE Sensex. The stock hit a 52-week low of Rs 1,123 on December 6, 2017 in intra-day trade. A combined 335,101 equity shares changed hands on the counter on the BSE and NSE.