BENGALURU: India’s Siemens Ltd will explore a spinoff of its energy business at the behest of some of its shareholders, the electrical appliance maker said on Monday, sending its shares soaring to a record high.
Its board also approved setting up a unit in financial hub Mumbai if and when the company decides to implement the demerger, it said in a stock exchange filing.
Its German subsidiary Siemens Energy, one of the shareholders calling for the spinoff, has been exploring options to exit some markets and products from its troubled wind turbine business to strengthen its balance sheet after the company posted an annual net loss last month.
Siemens Energy is also considering selling part of its 24 percent stake in Siemens Ltd to its former parent company Siemens AG.
Germany-based Siemens AG and its unit are also the other shareholders demanding a spin-off of India’s energy business.
Shares of Siemens Ltd., which have gained nearly 50 percent so far this year, rose nearly 7 percent following the news.
In addition to the energy segment, which includes transformer manufacturing, the Indian company also manufactures home appliances and smart infrastructure and provides cybersecurity services.
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