Siemens hits new summit, soars nearly 9% on plans to spin-off energy biz

Shares of Siemens soared nearly 9 per cent to a new life-time high at 4,244.55 in Monday's intra-day deals on the BSE after the company announced its plan to consider demerger of its energy business into a separate entity.

At 1:45 PM, Siemens traded with a gain of 7.7 per cent at Rs 4,205. Around 29,000 shares had exchanged hands at the counter, as against the two-week average volume of around 13,000 shares on the BSE.

The stock has been a star outperformer so far this year, with a gain of over 15 per cent as against the BSE benchmark return of 17.5 per cent.

The company in an exchange filing today said, certain promoters of the company, namely Siemens Aktiengesellschaft, Germany, Siemens International Holding B.V. and Siemens Energy Holding B.V., and also Siemens Energy Aktiengesellschaft, which is the ultimate parent company of Siemens Energy Holding B.V., have each requested the board of directors of Siemens to consider, evaluate and thereafter start taking exploratory steps towards a potential demerger of the company's energy business into a separate entity.

Further, the board has authorized the company's management to commence exploratory steps as may be required to examine a potential demerger of the energy business. It also approved the immediate incorporation of a wholly-owned subsidiary in Mumbai for the aforesaid demerger plan.

Earlier in November, for the quarter ended September Siemens reported a net profit of Rs 571 crore, down 12.4 per cent from a year ago at a consolidated level. For the same period, the company reported revenue from operations of Rs 5,721 crore, up 25.3 per cent YoY.