Updated December 18th, 2023 at 15:04 IST
Siemens Ltd surges over 8%, after a strategic decision to incorporate energy arm
Further, the the board has approved the immediate incorporation of a wholly-owned subsidiary
Shares of Siemens Ltd, a tech-firm focused on infrastructure, surged as much as 8.74 per cent to hit a fresh 52-week high of Rs 4,244.55, after the board's approval for incorporating a wholly owned subsidiary, Siemens Energy Holding BV.
The promoters of the Siemens arm have requested the Board of Directors of the company to consider, evaluate and thereafter take exploratory steps towards a potential demerger of the firm's energy business into a separate entity, as per an exchange filing.
In a meeting held on December 18, the board of directors took note of the above and authorised Siemens Ltd's management to commence exploratory steps as may be required to examine a potential demerger of the company’s energy business, which shall be subject to further consideration and deliberation.
Further, the board has approved the immediate incorporation of a wholly owned subsidiary on the basis that the 'Proposed Subsidiary' may be required if and when the board decides to implement the aforesaid demerger.
In the quarter ending September this year, Siemens Ltd reported a 36 per cent jump in net-profit to Rs 534 crore as against Rs 392 crore in the same period last fiscal year.
The company's revenue soared from Rs 4,236 in the quarter ending September last year to Rs 5,297 crore in the same period this year, indicating a 26 per cent.
As of 2:05 pm, shares of Siemens Ltd were trading 6.60 per cent higher at Rs 4,161.10 per share.
Published December 18th, 2023 at 15:04 IST