Siemens Limited received approval from the National Company Law Tribunal (NCLT) to reduce the share capital of its subsidiary, C&S Electric Limited, paving the way for it to become a wholly owned subsidiary.

The NCLT, New Delhi Bench, passed the order on September 24, 2026, which was uploaded to its website on September 25, 2026. The order approves the reduction of 343,948 equity shares with a face value of ₹10 each. These shares constitute 0.78% of the total issued, subscribed, and paid-up equity share capital of C&S Electric.

Regulatory approval and capital structure

The approved reduction targets shares held by specified shareholders, excluding Siemens Limited itself. Currently, Siemens Limited holds 99.22% of the equity share capital of C&S Electric. The remaining 0.78% is held by other shareholders who are being bought out through this capital reduction mechanism.

Once the implementation steps are completed in accordance with regulatory requirements, C&S Electric will transition to being a wholly owned subsidiary of Siemens Limited. The company stated that it will make further intimation regarding the completion of this process in due course.

What the numbers show

The transaction highlights a consolidation strategy where Siemens Limited is moving from a majority stakeholder position (99.22%) to full ownership. By eliminating the minority stake of 0.78%, the company simplifies the ownership structure of C&S Electric, potentially reducing administrative overheads associated with minority shareholder reporting and governance for this specific entity.

Siemens Limited has filed applications with the National Stock Exchange of India and BSE seeking no-objection for the re-classification of two Siemens Energy entities from the "promoter" category to the "public" category. The filing was made on September 22, 2026, following board approval earlier this month.

This corporate action aligns with Regulation 31A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company intends to seek approval or no-objection from stock exchanges for this change in due course.

Entities Involved

The re-classification request pertains to the following persons, referred to as "SE Entities":

Both entities currently hold nil equity shares in the company.

Regulatory Compliance

The Board noted that the SE Entities, along with related persons as defined in Regulation 31A(1)(b), satisfy the requirements set out in Regulation 31A(3)(b). These entities have confirmed their continued compliance with conditions mentioned in Regulation 31A(4) post re-classification.

Additionally, the Company satisfies the conditions set out in Regulation 31A(3)(c). This intimation was issued pursuant to Regulation 31A of the Listing Regulations.