Siemens to explore energy business spin-off, shares jump to record high

India's Siemens Ltd will explore a spin-off of its energy business at the behest of some of its stakeholders, the electrical appliances-maker said on Monday, sending its shares to a record high.

Shares of Siemens Ltd, which has added nearly 50 per cent in value so far this year, rose as much as nearly 7 per cent after the news. Image Source: Reuters

India's Siemens Ltd will explore a spin-off of its energy business at the behest of some of its stakeholders, the electrical appliances-maker said on Monday, sending its shares to a record high.

Its board also approved the incorporation of a unit in the financial hub of Mumbai, if and when the company decides to implement the demerger, it said in an exchange filing.

Its German affiliate Siemens Energy , one of the shareholders calling for the demerger, has been reviewing options to exit some markets and products of its struggling wind turbine business in a bid to shore up its balance sheet after swinging to an annual net loss last month.

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Siemens Energy has also been considering selling some of its 24 per cent stake in Siemens Ltd to its former parent Siemens AG.

Germany-based Siemens AG and its unit are also the other shareholders calling for a demerger of the Indian energy business.

Shares of Siemens Ltd, which has added nearly 50 per cent in value so far this year, rose as much as nearly 7 per cent after the news.

Apart from the energy segment, which includes manufacturing transformers, the Indian firm also makes home appliances, smart infrastructure, and provides cyber-security services.

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