Is the 50% fall in Siemens India shares a game of demerger|
On Monday, many people were shocked when they saw almost 50% fall in Siemens India shares on their trading apps, but there is no need to be afraid, this is a normal fall which has come due to a demerger.
What has happened?
Siemens India has separated its energy business (demerger). Now those who are shareholders of Siemens India will also get shares of the new company – Siemens Enery India, in 1:1 ratio. Meaning: If you had 1 share of Siemens India, you will get 1 share of Siemens Energy India.
Why did the share price fall so much?
On Friday, Siemens India share closed at Rs 4,939.80. On Monday it opened at Rs 2,571 – that is, a fall of almost 48%. The market deducted the value of the energy business from the stock, so a fall is being seen. Then the share fell further to Rs 2490, but after that it rebounded by 20% to Rs 2,998. Some apps are still seeing a fall of 40-50%, but this is a technical adjustment – there has been no real loss.
Record Date and Deliverability
April 4 (Friday): Last date to buy Siemens India shares.
April 7 (Monday): Record date – whoever holds shares till that day will get shares of the new energy company.
You will get Siemens Energy India shares according to the Siemens India shares you hold in your demat account.
When will the new company be listed?
The listing process of Siemens Energy India has started. It may take 60-90 days for listing (according to IIFL Securities). Listing is expected by June 2025, but it may happen a little earlier in India (according to Nuvama Research).
So what should investors do?
Don’t panic – the fall is a technical adjustment. This decision can be a positive step for long term investors. You will get shares of both the companies, so the actual value can be the same or even higher in future. Check whether Siemens India shares are in delivery in your deposit or not – only then you will be eligible for Siemens Energy shares.
