Siemens Demerger: Shares jump 20% on ex-date for energy business

Siemens Demerger News:

siemens demerger

On the BSE, Siemens stock opened at Rs 2,571 as the company moves forward with its much-anticipated demerger. April 8 marks the official record date, where eligible shareholders will receive one Siemens Energy India share for every Siemens India share held — maintaining a 1:1 share allocation ratio. This strategic move aims to unlock value and streamline business operations, drawing strong attention from investors and market analysts alike.

Siemens Demerger Alert: Why April 7 Is a Critical Date for Investors

April 7 holds major significance in the Siemens demerger process, as it’s the last trading day before the record date set for shareholder eligibility. Investors holding Siemens India shares by the end of this day will qualify to receive an equivalent 1:1 share in Siemens Energy India. This corporate action is a key step in Siemens’ strategy to separate its energy business and unlock focused value creation. Market participants are closely watching the stock, as April 7 could influence investor positioning and short-term market movements.

Expected Listing Date of Siemens Energy India After Demerger

While the exact listing date of Siemens Energy India remains unconfirmed, market analysts offer varying projections. According to IIFL Securities, the listing could take approximately 60 to 90 days from the record date, aligning with Siemens AG’s broader timeline targeting June 2025. On the other hand, Nuvama predicts a quicker turnaround—possibly within a month—citing Siemens India’s robust scale and operational readiness. Historical demergers like ITC Hotels and Jio Financial Services were listed within 23 to 33 days, though others like Piramal Pharma and NMDC Steel experienced extended timelines. Investors are advised to stay alert as the final listing date may vary based on regulatory and operational factors.

Siemens Energy India: Core Operations, Business Segments & Vision

Siemens Energy India is positioned at the forefront of India’s transition to sustainable and efficient energy solutions. Its core operations span across power generation, renewable energy integration, transmission technologies, and industrial energy systems. The company offers advanced gas and steam turbines, grid stability solutions, and digital energy management services, catering to both public and private sector clients. With a sharp focus on innovation and decarbonization, Siemens Energy India aims to accelerate the shift toward cleaner energy, aligning with India’s net-zero targets. Its long-term vision revolves around building a resilient, low-carbon energy ecosystem, supported by technological excellence and global expertise.

Inside Siemens Energy India’s Order Book

As of the December 2024 quarter, Siemens Energy India reported a solid order book valued at Rs 10,050 crore for FY24, highlighting its strong market presence and execution capabilities. During the same fiscal year, the company secured new orders worth Rs 8,800 crore, driven by demand in power generation, grid infrastructure, and energy transition projects. This growing order pipeline underscores Siemens Energy India’s strategic positioning in India’s evolving energy sector and reflects sustained client confidence across both public and private domains.

Growth Forecast: Siemens Energy India’s Roadmap to Expansion

According to IIFL Securities, Siemens Energy India is poised for a robust 24% CAGR in energy revenues from FY24 to FY27, driven by a structural surge in global transmission infrastructure demand. The company is also expected to benefit from a favourable product mix and improved pricing power, potentially boosting its operating profit margins to nearly 18% in FY25. Jefferies highlights Siemens Energy India as a key player in India’s massive Rs 9.2 lakh crore transmission capex pipeline, projecting double-digit EPS growth (2x CAGR) during the same period. These projections underline strong investor confidence and reinforce the company’s position as a major force in India’s energy transformation.

FAQs on Siemens Dimerger

Post-demerger, shareholders retain ownership in both Siemens India and the newly formed Siemens Energy India, maintaining their stake across both entities.

When a business is split, it can result in two independent companies—either with different owners or retaining the same shareholder base. A popular type of demerger is a spinoff, where the parent firm acquires equity in the new entity equivalent to what it relinquishes from the original company.

Demerger announcements can sometimes trigger a short-term dip in the company’s stock price, raising concerns among investors.

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