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Siemens Share Price Drops 50% Post-Demerger with Siemens Energy India

Written by: Nikitha DeviUpdated on: Apr 7, 2025, 3:20 PM IST
Siemens Ltd shares fell 50% post-demerger with Siemens Energy India; SEIL to operate independently with new leadership and focused energy operations.
Siemens Share Price Drops 50% Post-Demerger with Siemens Energy India
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Siemens Ltd has been in focus on Monday, April 7, 2025, following the implementation of the demerger scheme between Siemens Ltd and Siemens Energy India Ltd (SEIL). 

On April 7, 2025, Siemens share price opened at ₹2,450.00, down from its previous close of ₹4,928.15. At 9:45 AM, the share price of Siemens was trading at ₹2,450.00, down by 50.29% on the NSE.

Demerger Scheme with Siemens Energy India

The decline follows the listing adjustment due to the separation of Siemens’ Energy Business into a new entity, Siemens Energy India Ltd. Under the Scheme of Arrangement, shareholders of Siemens Ltd will receive one equity share of SEIL for every one share held in Siemens Ltd, as per a 1:1 ratio.

The record date for the allotment of SEIL shares was fixed as Monday, April 7, 2025. Only those shareholders who held Siemens Ltd shares as of this date will be eligible to receive the new SEIL shares.

This move is in line with Siemens Ltd’s strategy to streamline operations and unlock value by separating its energy business into a distinct listed entity. Siemens Energy India will now focus independently on the generation, transmission, and distribution of energy, while Siemens Ltd will continue its operations in industrial automation, smart infrastructure, mobility, and digital industries.

Siemens Energy India’s Board of Directors

Siemens Energy India Limited has announced the formation of its Board of Directors as it begins operations as an independent company. 

In a meeting held on March 25, 2025, the Board appointed Mr. Sunil Mathur, Managing Director and CEO of Siemens Limited and currently a Non-Executive Non-Independent Director, as Chairman of the Board.

Mr. Guilherme Mendonca, previously Head of Siemens Limited’s Energy Business, has taken over as the Managing Director and CEO of Siemens Energy India.

Mr. Harish Shekar, who led finance for Siemens Limited’s Energy Business, has been named Executive Director and CFO. Additionally, the Board welcomed three Independent Directors: Mr. Ketan Dalal, founder of Katalyst Advisors; Mr. Subodh Kumar Jaiswal, a retired IPS officer; and Ms. Swati Salgaocar, Director at Vimson Group.

Conclusion 

The demerger has drawn significant attention from market participants, as it allows investors to value the two businesses separately, potentially offering better growth visibility and improved capital allocation across the respective domains.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Apr 7, 2025, 10:02 AM IST

Nikitha Devi

Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.

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