Siemens Shares Hit Record As It Considers Demerger Of Energy Business

Shares of Siemens Ltd. hit an all-time high on Monday after the board of directors authorised the management to commence exploratory steps for potential demerger of the company's energy business into a separate entity.

The decision by the board of directors comes after the company's promoters requested the board to consider, evaluate and begin taking exploratory steps towards the demerger of the company, according to an exchange filing

The promoters making the request include Siemens Aktiengesellschaft, Germany, Siemens International Holding BV and Siemens Energy Holding BV, and Siemens Energy Aktiengesellschaft.

The company said the potential demerger would be subject to further consideration and deliberation by the board of directors.

The board also approved the immediate incorporation of a wholly-owned subsidiary in Mumbai. This subsidiary may be required if and when the board approves the implementation of the demerger.

Jefferies identified Siemens as one of the top picks from the industrial sector in a Dec. 17 note.