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Informist, Tuesday, Mar. 25, 2025

 

--NCLT approves Siemens' energy business demerger into Siemens Energy India

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Tuesday approved the demerger of Siemens Ltd.'s energy business into a wholly-owned subsidiary of the company, Siemens Energy India Ltd. "We observe that no adverse comments have been made regarding the state of affairs of the transferor company," said the tribunal. 

 

Neither any objector has come to oppose the scheme nor any party has controverted any averments made in the company scheme application, the tribunal said. "From the materials available on record, the scheme appears to be fair and reasonable and is not in violation of any provisions of law or contrary to public interest/policy," the tribunal added.

 

In May last year, the board of the respective companies had approved the demerger scheme. The demerger scheme also includes issuance of equity shares by Siemens Energy India to shareholders of Siemens.

 

Siemens is a part of the Siemens group, a globally active technology group that is focused on areas of automation and digitalization in the process and manufacturing industries, intelligent infrastructure for buildings and distributed energy systems, and smart mobility solutions. Siemens Aktiengesellschaft(AG), incorporated in Germany, is the parent company of the Siemens group. Siemens is one of India's largest multinational conglomerates with interests in multiple businesses.

 

Siemens AG demerged its energy business globally in 2020 and in continuation of the aforesaid strategy, demerged the energy business of Siemens Ltd. into an independent company, Siemens Energy India, which will be listed on the domestic stock exchanges.

 

According to the applicants, the demerger was proposed with the aim to ensure that both the energy business and the remaining business focus on their core activities, portfolios and capital allocation. This will enable both businesses to have independent and focussed management and adopt a clear, direct and tailored go-to-market and operational approach for the respective businesses to leverage the full potential of the Indian and export markets, said the applicants.

 

The strategic and operational separation of the energy business from the remaining business of Siemens will help the businesses achieve strategic independence, financial flexibility, reduce complexities and dependencies and will sharpen strategic profiles of both the businesses, said Siemens Ltd.  

 

On Tuesday, shares of Siemens ended 2.0% lower at INR 5,119.10 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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