Siemens India shares surge 20% on ex-date for energy business spin-off

Siemens Energy plunges 39% in market debut after demerger from Siemens India

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Shares of Siemens Ltd rose over 20 percent on April 7 as the capital goods major went ex-demerger post-spin-off of its energy business in India.

Shareholders will get one share of Siemens Energy India for every Siemens India share they own.

The stock plunged 40 percent as part of price discovery for Siemens Energy and later rose 20% to trade above Rs 3,000.

The steep cut came during the price discovery trade, where the valuation of the newly formed entity was determined based on the differential between Siemens India's April 4 closing price and the opening price of Siemens Energy on Monday.

The record date for the demerger of Siemens India’s energy business was set for April 7, 2025, and the pricing process has been guided by inputs from both domestic active and passive fund managers.

Nuvama Alternative & Quantitative Research noted that Siemens Energy’s price, until its listing, should ideally reflect the valuation gap derived during the SPOS session. The firm clarified that Siemens Energy will temporarily remain in all NSE and BSE indices — including the Nifty Next 50 — at this discovered price until its listing date.

As for global passive fund managers such as MSCI and FTSE, Nuvama said no index adjustments or trading activity is expected on the record date itself, i.e., April 7. Their moves will likely follow only after the new entity lists.

The market reaction highlights investor caution as the newly formed Siemens Energy begins its journey as a separately listed entity, while clarity on its standalone valuation and index inclusion continues to evolve.

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