The deal, structured on a droop sale foundation, can be executed on a cash-free and debt-free foundation, topic to agreed changes.
The transaction is predicted to shut in June 2026, pending essential regulatory and statutory approvals, together with clearance from the Competitors Fee of India. The valuation was decided after negotiations with the client and primarily based on two impartial valuation experiences carried out by Grant Thornton Bharat LLP and KPMG Valuation Companies LLP as of September 30, 2025.
The Board’s resolution to divest stems from the character of the enterprise, which primarily capabilities as a gross sales organisation with outsourced manufacturing and depends closely on mental property and capabilities held by Innomotics GmbH, now owned by KPS Capital Companions following its acquisition from Siemens AG on October 1, 2024.
Siemens acknowledged it lacks the in-house IP and functionality to proceed servicing the enterprise independently.
The strategic transfer comes as Siemens AG had already transferred all mental property rights to Innomotics GmbH as a part of a world restructuring. Siemens emphasised that the sale to Innomotics India was probably the most appropriate plan of action given the operational mannequin of the Low Voltage Motors enterprise.
The Low Voltage Motors enterprise recorded income of Rs 967 crore and working revenue of Rs 35 crore for the 12 months ended September 30, 2025, contributing 6% to Siemens’ whole income from operations and a couple of% to working revenue, excluding the demerged Power enterprise.Additionally learn: India’s present bull run triggered an enormous wealth switch from poor to wealthy: Shankar Sharma
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t signify the views of The Financial Occasions.)
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