Shares of Siemens Ltd soared as much as 20% on Monday, trading at Rs 2,940 on the NSE, after opening at Rs 2,450, as the capital goods major went ex-demerger following the spin-off of its energy business in India.
The stock opened at Rs 2,571 on the BSE. Monday marks the record date for the demerger, with eligible shareholders set to receive one share of Siemens Energy India for every share held in Siemens India, in a 1:1 ratio.
Friday, April 4, was the last trading day to purchase Siemens shares to qualify for the allotment of Siemens Energy India shares. Under the 'T+1' settlement cycle, investors need to hold the shares in their demat accounts by the end of trading on Friday to be eligible.
The spin-off follows the approval from the National Company Law Tribunal on March 26. The newly formed Siemens Energy India entity will be listed separately, with the subtracted value from the parent company’s stock price representing the discovered price of the demerged business.
According to IIFL Securities, the listing process for Siemens Energy India is expected to take 60 to 90 days from the record date, in line with the German parent Siemens AG’s guidance of a June 2025 listing.
Until Siemens Energy India is listed, passive fund managers will retain the energy unit within NSE and BSE indices for three trading days post-listing.
Siemens AG had globally spun off its energy business in 2020. The Indian demerger comes nearly five years later, creating two independent publicly traded entities.
Out of 21 analysts tracking Siemens Ltd, 12 have a ‘buy’ rating, five recommend a ‘hold’, and four suggest a ‘sell’, according to data from Trendlyne.
Also read | Siemens India shares gain 4% as NCLT approves energy business demerger
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The stock opened at Rs 2,571 on the BSE. Monday marks the record date for the demerger, with eligible shareholders set to receive one share of Siemens Energy India for every share held in Siemens India, in a 1:1 ratio.
Friday, April 4, was the last trading day to purchase Siemens shares to qualify for the allotment of Siemens Energy India shares. Under the 'T+1' settlement cycle, investors need to hold the shares in their demat accounts by the end of trading on Friday to be eligible.
The spin-off follows the approval from the National Company Law Tribunal on March 26. The newly formed Siemens Energy India entity will be listed separately, with the subtracted value from the parent company’s stock price representing the discovered price of the demerged business.
According to IIFL Securities, the listing process for Siemens Energy India is expected to take 60 to 90 days from the record date, in line with the German parent Siemens AG’s guidance of a June 2025 listing.
Until Siemens Energy India is listed, passive fund managers will retain the energy unit within NSE and BSE indices for three trading days post-listing.
Siemens AG had globally spun off its energy business in 2020. The Indian demerger comes nearly five years later, creating two independent publicly traded entities.
Out of 21 analysts tracking Siemens Ltd, 12 have a ‘buy’ rating, five recommend a ‘hold’, and four suggest a ‘sell’, according to data from Trendlyne.
Also read | Siemens India shares gain 4% as NCLT approves energy business demerger
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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