Here is why Siemens India shares plunged 50% on Monday

The demerger was executed in a 1:1 ratio; eligible shareholders will receive one share of Siemens Energy India for every share held in Siemens India as of the record date, April 7. The last day to purchase shares to be eligible for the corporate action was Friday, April 4.

The spin-off follows National Company Law Tribunal (NCLT) approval granted on March 26 and mirrors Siemens AG's global restructuring move in 2020, which created independent energy and industrial businesses.

The demerged entity’s value was effectively subtracted from Siemens India’s share price, with the difference representing the discovered price of Siemens Energy India, which will be listed as a separately traded company in the coming days.

In the quarter ended December 2024, Siemens India’s net sales fell 28.43% annually to ₹3,174.70 crore, down from ₹4,435.80 crore in December 2023.

Quarterly net profit, however, rose 21.43% year-on-year to ₹562.70 crore as against ₹463.40 crore a year earlier.

Its operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), dropped 30% YoY to ₹477 crore from ₹679 crore in the year-ago period.

With the completion of this demerger, Siemens India and Siemens Energy India will now operate as independent, publicly traded entities, each with a more focused business strategy and investor base.

Siemens shares ended 15.59% higher at ₹2,832 with reference to its opening price while it closed 42.53% lower from its previous closing price.