Siemens India Shares Surge 4% After NCLT Approves Energy Business Demerger

Siemens India’s stock rose 3.8–4% intraday on March 26, 2025, hitting ₹5,317.15 on the BSE, following the National Company Law Tribunal’s (NCLT) approval of its energy business demerger into Siemens Energy India.

The demerger, effective March 25, includes a 1:1 equity allotment ratio, with a record date set for April 7, 2025.

Key Details of the Demerger

• Structure: Shareholders will receive one Siemens Energy India share for every Siemens share held.

• Leadership: Guilherme Vieria De Mendonca, former head of Siemens’ energy division, will lead the demerged entity as MD and CEO, while Harish Shekar becomes CFO.

• Objective: The move aims to unlock value by separating the energy business, which will list independently on stock exchanges.

Market Reaction and Performance
The surge reversed two days of declines, with the stock rebounding 3.76% on March 26.

However, shares remain 25% below their six-month peak of ₹8,129.95 (October 2024). Analysts project a 21% upside to an average target price of ₹6,421, maintaining a consensus “Buy” rating.

Financial Context
While Siemens reported a 21.5% YoY net profit rise to ₹614.6 crore in Q3 FY25, revenue fell 3.3% to ₹3,587.2 crore, and EBITDA dropped 11.5%.

The stock trades above short-term moving averages (5-day, 10-day) but below longer-term averages, signaling mixed momentum.

The demerger approval has injected optimism, though broader market caution persists due to recent underperformance.

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