Siemens Limited on Friday said that the deal to sell its low-voltage motors and geared motors businesses to a Siemens AG subsidiary for ₹2,200 crore was based on the valuation done by Grant Thornton Bharat and ICICI Securities Limited.
“The Valuer has applied the following methodologies: Discounted cash flow (DCF) method considering a weighted average cost of capital of 12.4 per cent (the LVM Business does not have a portfolio to serve the high growth infrastructure market and is present primarily in the industrial segment); and market multiple method considering the median enterprise value to trailing twelve months earnings before interest, taxes, depreciation and amortization of identified comparable companies,” the company said in a stock exchange filing.
It said that the valuer conducted an in-depth assessment, employing valuation methods such as discounted cash flow and market multiples. ”As a result, the Valuer has suggested a valuation range for the company, estimated to be between ₹2,070 crore and ₹2,165 crore.”
The Board plans to distribute 100 per cent of the sale consideration, after taxes, as a special dividend.
In May, the company had announced the selling of its low-voltage motors and geared motor businesses to Siemens Large Drives India Private Limited for ₹2,200 crore. On Friday at 10.22 am the stock price of Siemens Limited decreased by 0.55 per cent to ₹3,700 at 10:22 a.m. (BSE)