Siemens AG is set to acquire an 18% stake in Siemens India for €2.1 billion from Siemens Energy. The purchase price is approximately Rs 3,380 per share, reflecting a discount of 15% on the average price.

Siemens AG currently holds a 47.7% stake in Siemens India, while Siemens Energy owns 24%, according to the shareholding data at the end of the September quarter. After the completion of this deal, Siemens AG’s stake in Siemens India is expected to increase to nearly 66%, while Siemens Energy’s stake will decrease to 6%. 

Following this announcement, shares of Siemens jumped to an intraday high of Rs 3,568.80, up 4.3% from the previous closing price on the National Stock Exchange (NSE). At 3:20 pm, the scrip was trading at 2.22% higher at Rs 3,493.85. 

Siemens Energy, a subsidiary of Siemens AG, has also proposed a demerger of the energy business of Siemens India and aims to acquire a controlling stake in the demerged energy business.

As part of the arrangement, Siemens AG will allow Siemens Energy to use its 5% stake as collateral for guarantees. Siemens AG will buy out this collateral for €750 million if Siemens Energy chooses to draw it out.

The move comes as Siemens Energy reviews the structure of Siemens Gamesa to return the struggling wind division to profitability. Siemens Gamesa once considered a future growth driver, faced significant challenges due to unexpected wind turbine quality issues disclosed in June. The division is now expected to break even in the 2026 fiscal year, contributing to Siemens Energy’s €4.6 billion annual net loss.

This strategic move by Siemens AG underscores its commitment to shaping the future of Siemens India and optimising its presence in the energy sector.