Siemens Ltd today said its board has approved the proposal to merge Siemens Power

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Engineering Private Ltd with itself.

Siemens Ltd is into heavy electrical equipment sector.

As per the proposed swap ratio for the merger, shareholders would get six shares of Siemens Ltd for every 13 shares held in Siemens Power Engineering, according to a regulatory filing.

"Siemens AG (promoter) currently holds 75 per cent of the equity share capital of the company and the scheme has a mechanism to ensure that the public shareholding i.E. 25 per cent will be maintained at all times pursuant to the requirement of the listing agreement," the filing said.

The merger proposal was approved at the board meeting held today. The merger is also subject to various approvals, including that of shareholders.

Shares of Siemens Ltd fell 1.19 per cent to close at Rs 731.20 on the BSE.