Around 74% of Siemens shareholders voted against selling its low-voltage motors and geared motors business to a subsidiary of Siemens AG.

With the opposition to the resolution, the prominent view in the market now is that the company has to revisit the terms and conditions of the deal and reconsider the valuation that has made the investors fretful.

The board of directors of Siemens May had authorised the sale and transfer of its low voltage motors and geared motors businesses, along with related customer service operations, to its wholly-owned company, Siemens Large Drives India, under Siemens AG.

The supposed deal was valued at Rs 2,200 crore and scheduled to commence on 1st October 2023.

The business alleged to be on sale added Rs 1,061 crore in revenue, which makes up to 7% of the total revenue, and Rs 132 crore in profit, which makes up for 9% of its profit from operations in FY22.

The said transaction was subjected to some conditions by both parties, including approval from regulatory authorities, statutory bodies, and shareholders.

In today’s intraday session, the shares of Siemens Ltd reached a new 52-week high of Rs 4,068.85 on NSE.

At 12:30 pm, the shares traded at Rs 3,926 or 1.77% above its previous close on NSE.