The National Stock Exchange has given Siemens Ltd. an observation letter with no objection for the spinoff of its energy business into Siemens Energy India Ltd.
According to the scheme of arrangement, the demerger is 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, it said.
On Wednesday, the demerger had got a letter with 'no adverse observations' from the BSE.
The scheme of arrangement said that the demerger will help its energy business to react to short-term market and industry trends in a more flexible, quicker and more resolute manner, with better capital allocation, creating greater visibility of the business and strengthening the internal and external identity. Such a specialised company can attract different sets of investors, unlocking the value of the energy business for the shareholders.
Shares of Siemens ended 0.22% lower at Rs 6,725.65 apiece on the NSE, compared to a 0.15% advance in the benchmark Nifty.
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