Shares of Siemens Ltd. fell over 3 percent after its parent Siemens AG approved the spin off of its gas and power business into a separate entity.
Siemens’ Gas and Power will house the company’s oil and gas, conventional power generation, power transmission and related services businesses. This business will be listed in September 2020.
While there is no clarity from the parent on how its India business would be affected, Siemens Ltd., in an emailed response said the management will review the impact of the rejig and thereafter evaluate the future course of action in alignment with the Board of Directors. “Until that point of time, we will continue to operate with a clear focus on delivering sustainable and profitable growth.”
The energy management segment of the capital goods maker accounted for 52 percent of its revenue and 56 percent of its earnings before interest and taxes in financial year 2017-18.
Read EquityPandit’s Nifty Energy Outlook for the Week