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Siemens rises 4% as German parent to buy additional 18% stake for $2.28 bn

Siemen AG's total stake in its Indian arm will jump to 69 per cent from 51 per cent at present

Siemens

Siemens

SI Reporter New Delhi

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Shares of Siemens Ltd climbed 4 per cent to Rs 3,566.5 apiece on the BSE in Wednesday's intraday trade after its German parent Siemens Aktiengesellschaft (Siemens AG) announced to acquire an 18 per cent additional stake in the company for 2.1 billion euros ($2.28 billion).

With this, the company's total stake in its Indian arm will jump to 69 per cent from 51 per cent at present. Siemens Energy's stake will decrease from 24 per cent to 6 per cent.

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At 2:05 PM, Siemens Ltd was quoting 2.2 per cent at Rs 3,494 per share as against 1 per cent, or 705 points, rally in the benchmark S&P BSE Sensex.
 

The purchase price reflects a 15 per cent discount from the 5-trading-days volume-weighted average price before the day of signing. Siemens will provide no new guarantees to Siemens Energy.

"For our shareholders, the accelerated demerger of Siemens Ltd. India's energy activities will further sharpen the portfolio focus of Siemens. It also simplifies and strengthens our corporate structure in India, a fast-growing and strategically important market," said Roland Busch, president and chief executive officer of Siemens AG. READ MORE

Siemens Limited is a technology company focused on industry, infrastructure, digital transformation, transport as well as transmission and generation of electrical power. It is the flagship listed company of Siemens AG in India. The company's business structure is well oriented in meeting the needs of the industry in improving efficiency, quality, flexibility and speed. 

With its wide-ranging portfolio, market-oriented organization structure, global technology leadership and strong local competence, the company is in a good position to partner with the country in sustainable growth. 

Meanwhile, Siemens Ltd posted 43.4 per cent year-on-year (Y-o-Y) rise in its net profit to Rs 424 crore in the June quarter on the back of higher revenues. 

According to the statement, revenue in the quarter was at Rs 4,407 crore, a 14 per cent Y-o-Y increase over the same quarter in the preceding year. 

The company's new orders stood at Rs 5,288 crore, a 5.9 per cent increase over the same period last year. 

The company is yet to announce September quarter results.

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First Published: Nov 15 2023 | 2:29 PM IST

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