The company made this announcement after market hours on Wednesday, 11 April 2012.
Meanwhile, the BSE Sensex was up 127.30 points, or 0.74% to 17,326.70.
On BSE, 2,930 shares were traded in the counter as against average daily volume of 25,757 shares in the past one quarter.
The stock had hit a high of Rs 783.60 and a low of Rs 773.10 so far during the day. The stock had hit a 52-week high of Rs 951 on 26 July 2011. The stock had hit a 52-week low of Rs 627.05 on 20 December 2011.
The stock had underperformed the market over the past one month till 11 April 2012, falling 2.25% compared with the Sensex's 1.74% fall. The scrip had, however, outperformed the market in past one quarter, rising 9.26% as against Sensex's 6.33% gain.
The large-cap engineering company has an equity capital of Rs 68.06 crore. Face value per share is Rs 2.
Siemens said the share swap ratio for the proposed amalgamation of Siemens Power Engineering (SPEL) is such that for every 13 equity shares of the face value of Rs 10 each of SPEL, Siemens will issue 6 equity shares of the face value of Rs 2 each. Siemens will issue a total of 34.61 lakh shares on account of the amalgamation.
On the realization of the amalgamation, the total strength of approximately 800 employees of SPEL will be absorbed by Siemens, the company said.
Commenting on the development, Dr Armin Bruck, Managing Director, Siemens said, SPEL is our competence backbone for engineering and EPC contracts. The amalgamation will enable appropriate consolidation of the activities of SPEL and Siemens, with efficient utilization of their resources, greater economy of scales and leveraging synergies in various operating parameters.
Dr Armin further added, Our customers will be benefited from the integrated solutions approach of Siemens. This initiative is a step ahead in adding value to our shareholders.
SPEL provides engineering services, and engineering, procurement and construction (EPC) solutions mainly for power generation projects. It also offers design engineering services and 3D computer aided designs for power plants, electrical substations, steel plants to Siemens AG and its affiliated companies worldwide.
Siemens' net profit fell 70.3% to Rs 70.72 crore on 7.6% decline in net sales to Rs 2361.04 crore in Q1 December 2011 over Q1 December 2010.
Siemens, a 75% subsidiary of Siemens AG, Germany, is a leading powerhouse in electronics and electrical engineering. It operates in the core business areas of industry, infrastructure & cities, energy and healthcare.