The large-cap shares have fallen approximately 6% from 3600 to its current price in the last month of the period.
According to sources, the company disclosed talks with the German government, banks, and former parent Siemens AG in October about 16 billion in guarantees for project and warranty bonds needed to protect the firm’s 109 billion euro order book.
The banks involved in the talks will bear around 12 billion euros of the 15 billion, of which the government will backstop 7.5 billion, according to the people, who added that a solution for the remaining 3 billion had also been found, without specifying.
As per reports, Siemens Energy is considering selling a significant portion of its 24% stake in Siemens Ltd, its Indian subsidiary, in order to increase liquidity. Siemens AG, which already owns 51% of Siemens Ltd, is open to the idea, but the transaction terms have not been finalized.
Siemens AG is seeking a 15% discount on the purchase price of the shares, citing the asset’s high valuation as the reason for the request. Siemens Energy has not yet agreed to the proposed discount, and negotiations are still ongoing.
The reports added that no formal agreement has been reached and that the sale of Siemens Energy’s interest in Siemens Ltd. is still in its early stages. However, the fact that both companies are willing to consider the transaction suggests that it is a guaranteed deal.
The company has been dealing with difficulties in its wind turbine business, prompting S&P to downgrade its credit rating to BBB- in July.
As negotiations between Siemens Energy and Siemens AG continue, it remains to be seen whether and on what terms a final agreement will be reached. The potential consequences of this transaction.
The company’s financial statements show that operating revenues increased from Rs 13,198 crores in Q2FY23 to Rs 16,138 crores in Q2FY24. Moreover, over the same time period, net profit rose from Rs 1,088 crores to Rs 1,543 crores.
Siemens Limited is a technology company that focuses on digital transformation, industry, infrastructure, transportation, and the generation and transmission of electrical power.
Written by Sriram KV
