Siemens Shares Hit 20% Upper Circuit On Ex-Date For Energy Business Spin-Off

Shares of Siemens Ltd. were locked in 20% upper circuit on Monday — the ex-date for the spin-off of its energy business into a new entity, Siemens Energy India Ltd.

A stock spin-off occurs when a company separates a division or subsidiary and distributes the shares of the new independent entity to the parent company’s shareholders, allowing them to own shares in both companies.

Under the approved demerger ratio of 1:1, shareholders will receive one Siemens Energy India share for each Siemens share held. The record date and ex-date both fall on Monday.

During a special pre-open session, a constant price for Siemens Energy India was discovered and subtracted from Siemens India’s April 4 closing price of Rs 2,450, to determine the adjusted opening price.

Passive fund managers will retain Siemens Energy India in NSE and BSE indices until 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, in line with the German parent Siemens AG’s guidance of June 2025. Nuvama expects a faster timeline of about a month, citing Siemens India’s size.

The demerger was approved by the National Company Law Tribunal on March 26, nearly five years after Siemens AG globally spun off its energy business in 2020.

Siemens India shares were locked in upper circuit 20% at Rs 2,940, compared to a 3.99% decline in the NSE Nifty 50. It has fallen 1.55% in the last 12 months and 57.21% on a year-to-date basis. The relative strength index was at 61.22.

Fifteen out of 25 analysts tracking Siemens have a 'buy' rating on the stock, five recommend a 'hold' and five suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 3,058.93, implying an upside of 13.5%.