Siemens Share Price Drops 50% Post-Demerger with Siemens Energy India

Siemens Ltd has been in focus on Monday, April 7, 2025, following the implementation of the demerger scheme between Siemens Ltd and Siemens Energy India Ltd (SEIL). 

On April 7, 2025, Siemens share price opened at ₹2,450.00, down from its previous close of ₹4,928.15. At 9:45 AM, the share price of Siemens was trading at ₹2,450.00, down by 50.29% on the NSE.

Demerger Scheme with Siemens Energy India

The decline follows the listing adjustment due to the separation of Siemens’ Energy Business into a new entity, Siemens Energy India Ltd. Under the Scheme of Arrangement, shareholders of Siemens Ltd will receive one equity share of SEIL for every one share held in Siemens Ltd, as per a 1:1 ratio.

The record date for the allotment of SEIL shares was fixed as Monday, April 7, 2025. Only those shareholders who held Siemens Ltd shares as of this date will be eligible to receive the new SEIL shares.

This move is in line with Siemens Ltd’s strategy to streamline operations and unlock value by separating its energy business into a distinct listed entity. Siemens Energy India will now focus independently on the generation, transmission, and distribution of energy, while Siemens Ltd will continue its operations in industrial automation, smart infrastructure, mobility, and digital industries.

Siemens Energy India’s Board of Directors

Siemens Energy India Limited has announced the formation of its Board of Directors as it begins operations as an independent company. 

In a meeting held on March 25, 2025, the Board appointed Mr. Sunil Mathur, Managing Director and CEO of Siemens Limited and currently a Non-Executive Non-Independent Director, as Chairman of the Board.

Mr. Guilherme Mendonca, previously Head of Siemens Limited’s Energy Business, has taken over as the Managing Director and CEO of Siemens Energy India.

Mr. Harish Shekar, who led finance for Siemens Limited’s Energy Business, has been named Executive Director and CFO. Additionally, the Board welcomed three Independent Directors: Mr. Ketan Dalal, founder of Katalyst Advisors; Mr. Subodh Kumar Jaiswal, a retired IPS officer; and Ms. Swati Salgaocar, Director at Vimson Group.

Conclusion 

The demerger has drawn significant attention from market participants, as it allows investors to value the two businesses separately, potentially offering better growth visibility and improved capital allocation across the respective domains.

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