Investors in Siemens Ltd. should mark Friday on their calendars, as it represents a crucial deadline for acquiring shares before the company’s split. This is the final opportunity to purchase shares that will qualify for the forthcoming Siemens Energy India equity distribution, part of the company’s strategic demerger of its energy sector. The demerger ratio is set at an advantageous 1:1, providing a significant incentive for shareholders.

Understanding the Demerger Process

The record date plays a pivotal role in determining which shareholders are eligible for the spin-off. Coinciding with this date is the ex-date—the moment the share price adjusts to reflect the separation of Siemens Energy India from Siemens Ltd.

On April 7, for every share held in Siemens India, investors will receive an equivalent share in the newly formed Siemens Energy India. A special pre-open trading session will help establish a constant price for Siemens Energy India, which will then be deducted from Siemens India’s share price. This price adjustment is calculated based on the closing price on April 4 and the newly discovered opening price.

Timeline and Expectations for Listing

According to IIFL Securities, investors can expect the listing process to take between 60 to 90 days from the record date, aligning with Siemens AG’s guidance for a June 2025 listing. Conversely, Nuvama projects a quicker timeline of just a month, citing Siemens India’s considerable market footprint as a factor.

This demerger follows the National Company Law Tribunal’s approval granted on March 26 and marks an important chapter for Siemens, nearly five years after its global parent company, Siemens AG, successfully spun off its energy division in 2020.

Market Reaction

On Thursday, shares of Siemens Ltd. experienced a slight dip, closing 0.65% lower at Rs 5,248.55 on the NSE, reflecting a broader trend in the market as the Nifty index also fell by 0.35%. This movement underscores the market’s sensitivity during this transitional phase.

Key Takeaways

• Final Day to Buy: Friday is the last chance to buy Siemens shares for the demerger.
• Demerger Ratio: 1:1 for Siemens Energy India shares.
• Record and Ex-Dates: Important dates for determining eligible shareholders.
• Listing Timeline: Estimated between 60 to 90 days or potentially faster.

As investors navigate this significant transition, staying informed about timelines and market movements will be essential. For continued updates on Siemens and related market activity, consider following financial news outlets and market analysts.