Siemens Ltd board has approved the incorporation of a wholly-owned subsidiary in India to execute a proposed demerger process of its energy business, the company said in a regulatory filing Monday.
Certain promoters -- namely Siemens Aktiengesellschaft, Germany, Siemens International Holding BV and Siemens Energy Holding BV, and also its ultimate parent company Siemens Energy Aktiengesellschaft -- have each requested the board of directors (BoD) of the Siemens Ltd to consider, evaluate and thereafter, start taking exploratory steps towards a potential demerger of its energy business into a separate entity, the BSE filing said.
"The BoD has approved the immediate incorporation of a wholly-owned subsidiary in Mumbai, India (proposed subsidiary), on the basis that the proposed subsidiary may be required if and when the Board decides to implement the aforesaid demerger," it said.
The BoD, at its meeting held on December 18 2023, authorised the management to commence exploratory steps as may be required to examine a potential demerger of its energy business.
The proposal will be subject to further consideration and deliberation to be carried out by the BoD (including Committee(s) thereof) at the relevant point in time and the procedures to be followed by the company as per applicable laws, the filing said.
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