Siemens India Shares Rise 7% As NCLT Approves Energy Business Demerger

Siemens Ltd shares gained over 7% on Wednesday in the early morning trade as the National Company Law Tribunal (NCLT) approved the demerger of the company and Siemens Energy India Ltd.

Allotment Ratio For The Demerger

The allotment ratio for the equities for this demerger has been fixed at 1:1, which means that Siemens shareholders will receive one equity share each of the company for every share that they own on the record date.

Record Date

To determine the allotment eligibility, the record date has been fixed as April 7, 2025.

Appointment Date

The appointed date for the demerger is March 1, 2025 and the demerger of the company will be effective March 25.

Siemens India Share Price Today

At the time of filing the story or 2:01 pm on Wednesday, the shares of Siemens Ltd had gained 7.06% or Rs 361.45 to Rs 5,480.60 apiece.

The Story Behind The Demerger

Siemens Ltd's parent company Siemens AG had demerged its energy business globally in 2020 and the Indian counterpart's demerger of its energy business is done in the same vein.

Additionally, after the demerger Siemens Energy India, the energy business of Siemens will issue and allot 1 fully paid-up equity share of Siemens Energy India with a face value of Rs 2 each for every single fully paid-up equity share of Rs 2 each held in Siemens.

Primarily a technology company, Siemens is also focused on industry, infrastructure, digital transformation, transport as well as transmission and generation of electrical power. It is also a flagship listed company of Siemens AG in India.

In the last year, the shares of Siemens have gained 0.35% against the Sensex's rise of 7.6%.

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