Siemens India

Stocks
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Following the acquisition of the 18% stake, Siemens AG’s independent ownership in Siemens India will elevate to 69%.

Siemens AG plans to engage in a share purchase agreement with Siemens Energy, aiming to acquire an 18% stake in Siemens India Limited The transaction’s purchase price is 2.1 billion Euros, as stated by the company.

Siemens and Siemens Energy have reached an agreement to suggest to the board of Siemens India a separation of the energy business. Siemens Energy will eventually take over a majority stake in the separated energy division. The separation is anticipated to be finalized in 2025, ahead of the earlier scheduled timeline.

The acquisition cost demonstrates a standard discount of 15% based on the five trading days volume weighted average price leading up to the signing day. Siemens will additionally refrain from offering any new guarantees to Siemens Energy.

After the announcement, the company’s shares experienced a notable surge, climbing over 4% and reaching an intraday peak of Rs 4066 per share. As of the time of writing the article, the shares are currently trading at Rs 3495 per share, reflecting a 2.25% increase from Monday’s closing price of Rs 3418.20 per share on the BSE.

Turning your attention towards the current ownership stakes as of September 30, Siemens International holds a 47.7% stake in Siemens India, and Siemens Metals holds a 3.3% stake. Together, these entities currently possess a combined 51% stake in the Indian entity.

After the acquisition, the cumulative stake of these entities will increase to 69%, signifying a significant rise. Concurrently, Siemens Energy’s stake will decrease to 6% from its previous holding of 24%.

Siemens, the Indian joint venture between Siemens Energy and its parent company Siemens AG, saw Siemens Energy’s decision to sell the majority of its stake in the Indian joint venture to its parent as a move to bolster its balance sheet and reinforce its capital base.

Furthermore, Siemens Energy has put forth a proposal for the separation of the energy business within Siemens India. The company also intends to secure a controlling interest in the separated energy division.

Siemens AG has granted Siemens Energy permission to utilize its 5% stake as collateral for guarantees. Should Siemens Energy opt to utilise this stake as collateral, Siemens AG has agreed to repurchase it for 750 million euros.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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Siemens greenlights Rs 416 crore investment

The Indian headline indices started the session with notable rises, subsequently recording gains of more than 1%, fuelled by the robust performance across various sectors such as financial services, banks, auto, and information technology. With 1,966 shares rising on the BSE and 1,705 shares declining, the advance-decline ratio remained in favour of advances.

Siemens Ltd, a leading manufacturer of heavy electrical equipment, garnered attention in the news following the announcement of several positive developments disclosed by the company in the wake of its recent board meeting.

Recent developments
For the quarter ended September 30, 2023, the company recorded a revenue of Rs 5,297 crore, reflecting a significant 25% growth compared to the corresponding quarter in the previous year. Meanwhile, the profit after tax witnessed an impressive growth of 36% year-on-year, reaching Rs 534 crore.

The board of directors additionally proposed a dividend of Rs 10 per equity share with a face value of Rs 2 each (500%) for the financial year ending on September 30, 2023.

In addition to the financial updates, the company revealed investments amounting to Rs 416 crore for expanding the capacities of Power Transformers, utilized in the Power Transmission business, and Vacuum Interrupters for Medium Voltage Switchgear used in the Power Distribution sector. The company emphasized that the expansion in capacities for these products is geared towards meeting the increasing demand, both domestically and globally.

About the company
Siemens Limited stands as a technology-oriented company with a dedicated focus on industry, infrastructure, transportation, and the transmission and generation of electrical power. Leveraging the integration of the physical and digital realms, Siemens enables its customers to revolutionize their respective industries and markets, aiming to enhance the daily lives of individuals. Notably, Siemens Limited holds the position of being the flagship listed company of Siemens AG in India. As of September 30, 2023, the company reported a revenue of Rs. 17,701 crore from continuing operations.

Keep a close eye on this stock for the upcoming trading sessions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.