Siemens Slips 1.75% as Board Clears Rs 2,200-Crore Motors Biz Sale

Shares of Siemens Ltd slipped 1.75% after touching a day’s high of Rs 3,210 on 9th December. This happened as the company said on Monday (8th December) that its board has approved and executed a slump sale agreement. The agreement transfers its low voltage motors and geared motors business to Innomotics India Private Limited, a subsidiary of Innomotics GmbH. The sale is valued at Rs 2,200 crore on a cash-free, debt-free basis, subject to mutually agreed adjustments.

Siemens said the agreement follows recommendations from its Board committees. It is subject to customary conditions and statutory approvals, including competition clearance if required. The deal is expected to close by June 2026, within 6–8 months of execution.

The business being sold includes designing, developing, and testing low-voltage AC motors and geared motors. It covers ranges such as 1LE7, 1SE0, 1LA2, 1PQ0, 1LA8, 1PQ8, 1MB7, and custom models 1PT0 and 1PC7. It also includes customer services and spare parts.

The Rs 2,200-crore valuation was finalised after negotiations supported by two independent valuation reports. These reports are as of 30th September, 2025. For the 12 months ended the same date, the business recorded revenue of Rs 967 crore and operating profit of Rs 35 crore. In FY2023-24, it recorded revenue of Rs 928.296 crore. It also had a negative net worth of Rs 17.56 crore.

The unit contributed around 4.5% to Siemens’ FY2023-24 revenue. Siemens, meanwhile, posted revenue of Rs 20,496.6 crore and a net worth of Rs 15,210 crore for the year.

The buyer, Innomotics India Private Limited—unrelated to Siemens’ promoter group—reported revenue of Rs 706.424 crore. It had a profit after tax of Rs 88.646 crore for the 12 months ended 30th September, 2025.

Siemens said the sale aligns with the global separation of Innomotics from Siemens AG. The company noted that the motors business has limited synergies with its core operations. The unit employs 89 people and carries a negative capital employed of Rs 1.38 billion. The transaction will not impact Siemens’ shareholding structure.

At 3:25 PM, shares of Siemens were trading 1.75% lower at Rs 3,148.10 on NSE.

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