Siemens Limited announced it has received a no-objection letter from the National Stock Exchange of India (NSE) for the demerger of its energy business. The company plans to transfer the business to Siemens Energy India Limited (SEIL), its wholly-owned subsidiary incorporated on February 7, 2024.
The shares were trading flat at ₹6,736.65 on the NSE at 3.20 pm.
The scheme of arrangement, approved by Siemens Limited’s board of directors on May 14, 2024, involves demerging the energy business to SEIL in compliance with Sections 230-232 of the Companies Act, 2013. The NSE’s observation letter, dated September 18, 2024, green-lights filing the draft scheme with the National Company Law Tribunal (NCLT).
The demerger remains subject to other regulatory and statutory approvals. Siemens Limited must comply with various SEBI regulations, including disclosure of ongoing legal proceedings and adherence to the six-month validity of the observation letter for NCLT submission. The company must list SEIL’s shares within 60 days of receiving the NCLT order.