During Monday’s trading session, the shares of a technology company focused on industry, infrastructure, transport, as well as transmission and generation of electrical power, slumped nearly 50 percent to hit a new 52-week low at Rs. 2,490 on BSE. Here’s why.
Price Movement
With a market cap of Rs. 1.06 lakh crores, at 12:31 p.m., the shares of Siemens Limited recovered and are trading in the green at Rs. 2,997.3, up by nearly 16.6 percent, compared to its previous closing price of Rs. 4,939.8.
What’s the News
Siemens Limited drew attention on Monday following the official implementation of the demerger of Siemens Energy India Limited (SEIL). The drop in the stock price reflects an adjustment resulting from the separation of Siemens’ energy business into the newly formed SEIL.
According to the approved Scheme of Arrangement, shareholders of Siemens Limited will receive one equity share of SEIL for every one share they hold in Siemens Limited, following a 1:1 ratio. The record date for this allotment was set for Monday, April 7, 2025, meaning only shareholders of Siemens Limited as of that date will be entitled to receive shares in SEIL.
This strategic move aims to enhance operational focus and unlock shareholder value by creating a separate publicly listed entity for the energy business. Siemens Energy India will now operate independently, concentrating on energy generation, transmission, and distribution, while Siemens Ltd will continue to focus on industrial automation, smart infrastructure, mobility, and digital industries.
Also read: Solar pump stock in focus after receiving ₹14 Cr order for solar powered water pumps
Siemens Energy Share Allotment
4th April (Friday) was the final day for investors to purchase Siemens India shares in order to be eligible for shares in its newly demerged energy business, Siemens Energy India. Since the stock operates under a ‘T+1’ settlement cycle, April 7 (Monday) is the official record date that determines shareholder eligibility for this corporate action.
Shareholders who hold Siemens India shares in their demat accounts as of the record date will receive one share of Siemens Energy India for every share held. The value subtracted from Siemens India’s share price reflects the discovered price of the new energy entity. This demerger follows approval from the National Company Law Tribunal (NCLT) on 26th March.
The listing of Siemens Energy India could take approximately 60 to 90 days from the record date, aligning with the guidance from its German parent, Siemens AG, which targets a listing around June 2025, as per IIFL Securities. Additionally, domestic brokerage firm Nuvama also noted that, given Siemens’ significant presence in India, the listing process may be expedited.
Financials
Siemens India reported a significant decline in revenue from operations, experiencing a year-on-year decrease of nearly 3.3 percent, falling from Rs. 3,710 crores in Q3 FY24 to Rs. 3,587 crores in Q3 FY25. In contrast, during the same period, the company’s net profit increased from Rs. 506 crores to Rs. 615 crores, representing a growth of around 21.5 percent YoY.
About the company
Siemens Limited is engaged in the business of offering products, integrated solutions for industrial applications for manufacturing industries, drives for process industries, intelligent infrastructure and buildings, efficient and clean power generation from fossil fuels and oil & gas applications, transmission and distribution of electrical energy for passenger and freight transportation, including rail vehicles, rail automation and rail electrification systems.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.