Recently demerged Siemens Energy India Ltd. received approval from BSE and the National Stock Exchange on Wednesday for listing and trading of its equity shares from Thursday.
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 the parent received one share of Siemens Energy India for each share held.
The promoter holds 75% equity in the company, as per the latest shareholding data. Mutual funds own 3.51% and nearly 2.2 lakh retail investors holding nominal share capital up to Rs 2 lakh own 7.18%.
Jefferies expects Siemens Energy shares to list in the range of Rs 2,995 to Rs 3,711 apiece. On listing, the company should be India's largest listed pure-play power transmission and distribution equipment player, with over $10 billion market cap, followed by Hitachi and GE at $6.8–9.6 billion, the brokerage added.
Jefferies has a 'buy' rating on the stock with a price target of Rs 3,700 per share.
"Our price target values Siemens India e-Energy at 55 times PE Marc27E, which is in line with our price target multiple for ABB and pre-demerger multiple for Siemens. This reflects the improved outlook on railways and potential order flow and margin surprise from there."
Some downside risks include fixed cost rising faster than revenue growth and capex cycle trend weakening.
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