Siemens has exciting news for its shareholders! The company recently announced that the National Company Law Tribunal (NCLT) has approved its demerger, creating a new entity known as Siemens Energy India Ltd. This strategic move is aimed at enhancing operational efficiency and shareholder value, and it is set to reshape the landscape of the energy sector in India.
NCLT Approval and Key Details
In a regulatory announcement, Siemens revealed that the NCLT, specifically the Mumbai Bench, sanctioned the arrangement scheme on March 25, 2025. This approval allows for the restructuring of Siemens Limited and its new counterpart, Siemens Energy India Limited (SEIL). The demerger follows the provisions outlined in Sections 230 to 232 of the Companies Act, 2013.
Shareholder Benefits from the Demerger
One of the most attractive aspects of this demerger is the equity allotment ratio, which has been established at 1:1. This means that for every share owned in Siemens, shareholders will receive an equivalent share in Siemens Energy India. Specifically, each Siemens shareholder will gain one fully paid-up equity share of SEIL, with a face value of Rs 2, for each Siemens share held.
- Record Date: April 7, 2025
- Appointed Date for Demerger: March 1, 2025
- Effective Date of Demerger: March 25, 2025
Leadership Changes at Siemens Energy India
Following the demerger, significant leadership changes have been announced. Guilherme Vieira De Mendonca, previously overseeing the energy business, has been appointed as the Managing Director and CEO of SEIL. Additionally, Harish Shekar, who served as the finance head for the energy division, will step into the role of Executive Director and CFO of the new company.
Recent Financial Performance
In an earlier report from February, Siemens disclosed impressive fiscal results for its third quarter, showcasing a profit of Rs 614.30 crore, marking a 22% increase from Rs 505.40 crore in the same period last year. However, the consolidated revenue from operations saw a slight decline of 3% YoY, totaling Rs 3,587.20 crore.
Market Response
As a testament to investor confidence, Siemens shares saw a 2.16% uptick in early trading, reaching Rs 5,229.50 at 9:30 AM today.
This demerger not only sets the stage for Siemens Energy India to thrive independently but also reflects Siemens’ commitment to enhancing shareholder value and driving innovation in the energy sector. Keep an eye on this evolving story as it unfolds!
