Siemens Ltd has acquired the electric vehicle (EV) division of Mass-Tech Controls for Rs 38 crore. "The acquisition is in accordance with the definitive agreements entered between the parties which are subject to adjustments mutually agreed between the parties to the transaction", Siemens said in a regulatory filing.
The stock opened higher, buoyed by the news of the acquisition however, it fell prey to profit booking. At 11.32 am, the share was trading at Rs 3,750 on the National Stock Exchange, down 0.44 percent from the previous close. The stock has gained 33 percent in the past six months which gave investors more leeway to book partial profit.
In May, Chief Executive Officer Sunil Mathur had told Moneycontrol that this transaction along with low-voltage and gears exit was part of a larger plan for German major Siemens AG to hive off product businesses that were getting commoditised and focus on value-added and digital offerings.
Mathur said the company shall remain on the lookout to acquire businesses in India to boost its portfolio.
"We found a company with whom we were actually already working on the Switch Mobility projects in the area of charging stations and we are now able to take over this business to scale it up to address a portfolio and a market that we were earlier not present in", the CEO said.
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Talking numbers
Siemens Ltd reported a net profit of Rs 471 crore, a 38 percent increase in the second quarter ending on March 31, 2023, as compared to a profit of Rs 340 crore in the same quarter last year. The company follows a financial year from October to September.
Its revenue from operations stood at Rs 4,857 crore, up 28 percent from Rs 3,801 crore in the corresponding quarter of the previous fiscal.
Siemens is a technology company focused on industry, infrastructure, digital transformation, transport, transmission, and generation of electrical power.
Mass-Tech manufactures Battery chargers, converters, low-voltage switch gear and control panels.
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