Siemens Energy India Allots 35.6 Crore Shares To Siemens Shareholders After Demerger

Siemens Energy India Ltd. on Monday allotted 35.6 crore equity shares to shareholders of Siemens Ltd., following the company’s demerger scheme. The allotment, carried out in a 1:1 ratio, was approved by the Listing Committee on April 14, 2025.

The demerger, which separated Siemens Ltd.’s energy business into Siemens Energy India, became effective on April 7, the same day as the record and ex-date. Shareholders of Siemens Ltd. will receive one share of Siemens Energy India for each share held. Siemens Ltd. hit a 20% upper circuit on the ex-date. The new entity is expected to list on the stock exchanges within 30 to 90 days from the record date.

Siemens Energy India focuses on delivering products, solutions, and services across the energy value chain. Its portfolio includes grid technologies, industrial power generation, gas services, and project execution in power generation, transmission, and industrial applications.

The energy vertical contributed an average of 35% to Siemens Ltd.’s revenue and 40% to its EBIT between the financial year ending March 2021 and the financial year ending March 2024. For the financial year 2023-24, Siemens Energy India reported revenue of Rs 6,280 crore and Ebitda margin of around 15.7%. The company posted a net profit of Rs 710 crore. Its order book stood at Rs 10,050 crore at the end of the December 2024 quarter, with fresh orders worth Rs 8,800 crore during the financial year.

Fifteen of 25 analysts tracking Siemens Ltd. have a ‘buy’ rating, while five each recommend ‘hold’ and ‘sell,’ according to Bloomberg data. The average 12-month price target of Rs 3,382.06 indicates a potential upside of 20.3% from Monday’s close.

Jefferies expects Siemens Energy India’s earnings per share to grow at twice the rate of the remaining business, citing increased investment in India’s power sector as a key driver.