Siemens India gets Approval from NCLT Nod for Energy Business Demerger

Siemens Ltd. has received approval from the National Company Law Tribunal (NCLT) for the demerger of its energy business, leading to the establishment of Siemens Energy India Ltd. The equity allotment ratio for this demerger is set at 1:1, meaning shareholders of Siemens will receive one share of Siemens Energy India for each share they hold as of the record date, which is April 7, 2025.

The appointed date for the demerger is March 1, 2025, and the demerger will officially take effect on March 25, 2025. Following the demerger, Siemens Energy India will be listed separately on stock exchanges, a move anticipated to unlock significant value for shareholders.

Guilherme Vieria De Mendonca, formerly the head of Siemens' energy business, has been appointed as the Managing Director and CEO of the newly formed entity. Harish Shekar, who previously served as the finance head of the energy division, will take on the role of Executive Director and CFO.

This demerger aligns with Siemens AG's global strategy, which saw the separation of its energy business in 2020. In its latest financial results, Siemens Ltd. reported a 21.5% increase in net profit for the December quarter, reaching Rs 614.6 crore, despite a 3.3% decline in consolidated revenue to Rs 3,587.2 crore. The company's EBITDA also fell by 11.5%, reflecting a contraction in margins. Following these developments, Siemens Ltd. shares closed 2.2% lower at Rs 5,108, marking a 37% decline from their recent peak.