Siemens India Share Price Gains 6% Post NCLT Nod for Energy Business

This strategic move aims to unlock value for shareholders, with Siemens Energy India set to be listed separately on stock exchanges.

Siemens stock opened at ₹5,300 and hit a high of ₹5,501.70 before settling at ₹5,430 at 11:30 AM on the NSE, marking a 6.07% increase from the previous close of ₹5,119.10.

Demerger Details and Share Allocation

As part of the demerger, the company has fixed an equity allotment ratio of 1:1. This means that for every Siemens Ltd. share held as of the record date, shareholders will receive one share of Siemens Energy India.

The record date, which determines eligible shareholders for the allotment, is expected to be announced soon, as per news reports.

Leadership Changes in the New Entity

Guilherme Vieria De Mendonca, who previously led Siemens’ energy business, has been appointed as the Managing Director and CEO of Siemens Energy India.

Additionally, Harish Shekar, the former finance head of the energy division, will serve as the Executive Director and CFO.

Global and Indian Context of the Demerger

Siemens AG, the parent company, had globally separated its energy business in 2020. The Indian subsidiary’s move aligns with this strategy, enabling a focused approach towards the energy sector.

By listing Siemens Energy India as a distinct entity, the company aims to drive better operational efficiencies and shareholder value.

Q3 FY25 Financial Performance

Siemens Ltd. reported a 21.5% year-on-year increase in net profit for the December quarter, reaching ₹614.6 crore compared to ₹505.7 crore in the previous year.

However, its consolidated revenue saw a 3.3% decline, dropping from ₹3,709.5 crore to ₹3,587.2 crore. The company’s EBITDA also declined by 11.5%, falling from ₹453 crore to ₹401 crore, with margins contracting to 11.2% from 12.2%.

Conclusion

The approval of Siemens India’s demerger marks a significant structural change for the company. With Siemens Energy India set to operate as an independent entity, this separation aligns with the global restructuring of Siemens AG’s energy business.

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