Siemens Energy India Debuts Strongly on NSE/BSE, But Initial Gains Fizzle
Mumbai, India – Siemens Energy India Ltd. (SEIL), the newly demerged energy business of Siemens Ltd., made its highly anticipated debut on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) today, June 19, 2025. While the stock initially surged to its upper circuit limits, it saw its early gains dissipate by afternoon trade.
A Significant Demerger and Market Entry
The listing of Siemens Energy India follows its demerger from its parent company, Siemens Ltd., which became effective on March 25, 2025. This strategic move aims to create two independent, focused entities: Siemens Ltd., concentrating on Industry, Infrastructure, and Mobility, and Siemens Energy India Ltd., positioned as India’s largest pure-play power Transmission & Distribution (T&D) equipment company. As part of the demerger, shareholders of Siemens Ltd. received one share of Siemens Energy India for every share held.
Initial Market Performance: A Rollercoaster Debut
SEIL listed at ₹2,840 on the NSE (against a discovered price of ₹2,478.20) and ₹2,850 on the BSE (against a discovered price of ₹2,368.80). Immediately upon listing, the stock experienced a robust rally, hitting its 5% upper circuit limit on both exchanges, reaching ₹2,982 on the NSE and ₹2,992.45 on the BSE. This initial surge reflected strong investor interest and bullish sentiment surrounding the new entity.
However, the euphoria was short-lived. By afternoon trade, SEIL’s stock price witnessed a correction, trading around ₹2,761.30 on the NSE, down approximately 2.77% from its opening levels and about 5% from its intraday high. The current trading range for the day has been between ₹2,700 and ₹2,982 on the NSE.
Analyst Outlook and Industry Tailwinds
Despite the midday correction, market analysts maintain an optimistic long-term outlook for Siemens Energy India. Jefferies, a prominent brokerage, has positioned SEIL as the country’s largest listed pure-play T&D equipment provider, projecting a market capitalization exceeding $10 billion. They anticipate a robust 40% Compound Annual Growth Rate (CAGR) in earnings per share (EPS) from FY24 to FY27, driven by a strong T&D order pipeline and improved operating leverage.
Brokerages like Antique, Motilal Oswal, and HDFC Securities have initiated coverage with “Buy” ratings, setting target prices around ₹3,000 to ₹3,700. They highlight the company’s strong infrastructure with over ten state-of-the-art factories in India, its technology leadership, and its broad portfolio covering decarbonization, grid automation, EPC services, green hydrogen, and battery storage. The company is expected to significantly benefit from India’s growing investment in power transmission infrastructure, with a projected capital expenditure pipeline exceeding $100 billion.
Potential Headwinds
While the long-term structural story remains intact, analysts have cautioned about potential short-term volatility. SEIL’s exclusion from the MSCI Index, effective June 20, may trigger passive outflows of nearly $170 million, which could exert some downward pressure on the stock in the immediate future.
New Leadership at the Helm
In preparation for its listing, the Board of Siemens Energy India appointed Sunil Mathur as its chairman on March 25, 2025. Guilherme Mendonca, formerly head of Siemens Ltd.’s energy business, assumed the role of Managing Director and Chief Executive Officer, with Harish Shekar as the Executive Director and Chief Financial Officer.
The debut of Siemens Energy India marks a significant milestone in the Indian energy sector, positioning it as a key player in the nation’s energy transition and infrastructure growth, despite the initial volatility witnessed on its listing day.