Shares of Siemens Ltd. will be in focus on Friday, as it marks the last session for investors to buy shares under the T+1 settlement cycle, to qualify for receiving equity in the new company after the demerger of its energy business. The demerger ratio is set at 1:1.
The record date determines the eligible shareholders for the spin-off. The ex-date, which coincides with the record date, marks when the share price adjusts to reflect the split.
On April 7, Siemens India will issue one Siemens Energy India share for one Siemens India share held. During a special pre-open session, the constant price for Siemens Energy India will be discovered and subtracted from the share price of Siemens India.
This constant price is calculated as the difference between Siemens India's closing price on April 4 and the open price of the stock discovered during the special pre-open session. Passive fund managers will then maintain Siemens Energy India in all NSE and BSE indices till three days, after the company lists on Indian exchanges.
IIFL Securities expects the listing process to take 60 to 90 days from the record date, dating the listing in line with German parent Siemens AG's guidance of June 2025. Nuvama, on the other hand, suggests a fast process of a month due to Siemens India's size.
The demerger follows the National Company Law Tribunal's approval on March 26 and comes nearly five years after Siemens AG — the global parent of Siemens — spun off its energy business globally in 2020.
Shares of Siemens closed 0.65% lower at Rs 5,248.55 apiece on the NSE on Thursday, compared to a 0.35% decline in the benchmark Nifty.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
