Siemens AG, the German multinational technology conglomerate, will acquire 18% stake from Siemens Energy in Siemens Ltd. India. The value of this purchase has been pegged at USD 2.28 billion (approximately Rs. 18,968 crore).
With this purchase, Siemens AG’s stake in Siemens Ltd. India will increase to 69% from the current 51% and Siemens Energy’s stake will reduce to 6% from the current 24%. Siemens’ Energy operations in India will be handled by a to-be newly incorporated entity, which will be formed by demerger of Siemens Ltd. India. This to-be-formed entity will be a subsidiary of Siemens Energy. Siemens AG and Siemens Energy will propose this demerger to the board of directors of Siemens Ltd. India.
The aforementioned demerger is expected to be completed in 2025.