Siemens, a company known for its diverse business interests, experienced a remarkable surge in its stock value, reaching a new all-time high of Rs 4,244.55, a nearly 9% increase. This surge was a result of Siemens unveiling its plans to potentially separate its energy business into a distinct entity.
As of 1:45 PM, Siemens shares were trading with a gain of 7.7% at Rs 4,205, with around 29,000 shares changing hands compared to the two-week average volume of approximately 13,000 shares on the BSE. Siemens has been a standout performer in the stock market this year, boasting a gain of over 15%, surpassing the BSE benchmark return of 17.5%.
The company, in an official filing, disclosed that key stakeholders, including Siemens Aktiengesellschaft, Germany, Siemens International Holding B.V., Siemens Energy Holding B.V., and Siemens Energy Aktiengesellschaft, have urged the Siemens board of directors to contemplate and assess the possibility of demerging the company’s energy business into a separate entity.
To kickstart this process, the board has given the green light for the company’s management to take preliminary steps in exploring the potential demerger of the energy business. Additionally, the board approved the immediate creation of a wholly-owned subsidiary in Mumbai as part of the demerger plan.
In the financial quarter ending September, Siemens reported a consolidated net profit of Rs 571 crore, marking a 12.4% decline from the previous year. Despite this, the company saw a significant increase in revenue from operations, reaching Rs 5,721 crore, reflecting a notable 25.3% year-on-year growth.
