The share price of Siemens inched to an intra-day high of 8 per cent on March 26, 2025 at Rs 5514.05 at 12:33 pm, soon after the National Company Law Tribunal (NCLT) approved the company’s demerger with Siemens Energy India.
The share price of Siemens was trading in the green, up 7.52 per cent at Rs 5,504 on 12:40 pm on March 26, 2025, on the NSE. The company enjoys a market capitalisation of Rs 1,96,008.73 crore.
Previously, the stock price of Siemens hit a 52-week high of Rs 8,129.90 on October 16, 2024.
Additionally, the equity allotment ratio for the company’s demerger is set at 1:1. This means that Siemens shareholders will get one share of Siemens Energy India for every share of Siemens they had according to the record date.
Rationale for Demerger
Siemens, in an exchange filing, gave a rationale that the demerger is proposed with the goal to ensure that both the energy business and the remaining business will focus on their core activities, portfolios and capital allocation. This will ensure that both business get their independent and dedicated management to adopt a clear as well as direct tailored go-to-market and operational approach for both businesses. It is aimed at giving the full potential to the indian and export markets, the filing added.
According to the exchange filing, the record date to determine the allotment eligibility is set for April 7, 2025. The set date for the demerger is March 1, 2025 and will be effect from March 25, 2025. Additionally, Siemens Energy India will be listed as a separate entity on equity exchanges, with the company citing to unlock value.
Guilherme Vieira De Mendonça, formerly the head of Siemens’ energy business, has been appointed as the managing director and CEO of Siemens Energy India. Harish Shekar, who earlier worked as the finance head of the energy business, will be taking on the role of Executive Director and CFO.
Meanwhile, Siemens AG, the parent company of Siemens globally, demerged its energy arm in 2020. The demerger of Siemens’ energy arm in India is in line with its global strategy.
Siemens Q3 Financial Results
Siemens reported a 21.5 per cent increase in its net profit for the quarter ending December 2024, reaching an amount of Rs 614.6 crore compared to Rs 505.7 crore in the corresponding quarter of the previous financial year. Its consolidated revenue, however, dropped by 3.3 per cent to Rs 387.2 crore from Rs 3,709.5 crore in the same period.
Additionally, the earnings before interest, taxes, depreciation, and amortization (Ebitda) also dropped by 11.5 per cent to Rs 401 crore from Rs 453 crore a year ago. On the other hand, its new orders reached Rs 6,245 crore, with a growth of 18 per cent when compared to the same period in the previous year.
Notably, the revenue from the energy arm dropped from Rs 1,518 crore to Rs 1,485 crore year-on-year (y-o-y).
