Siemens Stock Rises 4%, Bags Largest Order From Railways
- Stocks Updates
Sahil Patil- 0
- 7 minutes read
Siemens stock price rose to approximately 4% in the opening trade on the 17th of January, 2023 (Tuesday). This event took place just after the industrial manufacturing company announced that it has successfully bagged its single largest-ever order by far. The company has also mentioned it has secured an order worth ₹26,000 crores from the Indian Railways. The deal is to deliver 1,200 locomotives having 9,000 horsepower (HP) in addition to 35 years of full service maintenance.
With this strong order from the Indian Railways, Siemens stock opened at ₹3,030 higher by 2.9%, against the previous closing of ₹2,943.60 on the Bombay Stock Exchange (BSE). As per the news, the large-cap stock has gained 3.7% to ₹3,051.80. Meanwhile, the market capitalization has also surged to ₹1.06 lakh crore. Compared to this, the BSE Sensex rose 228 points to 60,321 levels.
Currently, Siemens stock trades at 3.5% lower than its all-time high of ₹3,136.80 which touched back on the 15th of September, 2022. On the 9th of May 2022, Siemens stock hit its 52-week low of ₹2,150.75. Considering a year, the counter has increased while it has had an additional 10% rise in the last six months. That said, the technology company’s share has scaled by 1% in just a month and 4% in just a week. For more latest stock updates, make sure to visit
On Monday, there was a post-market hour release. In the release, Siemens, a subsidiary of Germany-based Siemens AG mentioned that it has successfully bagged the single largest order in the complete history of Siemens in India. The company has mentioned in a BSE filing,
“Siemens Limited will design, manufacture, commission, and test the locomotives. Deliveries are planned over an eleven-year period, and the contract includes 35 years of full service maintenance.”
The release also states that the locomotives will be assembled in the Indian Railways factory in Gujarat’s Dahod. That said, the maintenance will be performed in four depots of the Indian Railways, viz., Kharagpur, Pune, Raipur, and Visakhapatnam (Vizag).
Furthermore, the release mentions,
“Locomotive assembly and maintenance will be implemented together with the staff of Indian Railways. The contract has a total value of ₹26,000 crores (approximately), excluding taxes and price variation.”
Designed to haul loads of 4,500 tons at a maximum speed of 120 km/h, the locomotives will be used for freight transport throughout the Indian Railway network. With 9,000 horsepower, the locomotives will be among the world’s most powerful freight locomotives. In addition to advanced propulsion systems made locally in Siemens’ India factories, the trains will also use the Railigent platform to ensure high availability and performance.
Siemens CEO Roland Busch said,
"Siemens is supporting the sustainable transformation of India’s transportation sector as the country seeks to almost double freight capacity on its railways."
He also said,
I’m proud that this major order will help India achieve its ambitious goal of creating the world’s largest green rail network, as our locomotives will save more than 800 million tons of CO2 emissions over their lifecycle."
The 9,000 horsepower electric locomotive, which will be built in India using Siemens Mobility’s latest technology, is a significant milestone in the rail electrification mission of Indian Railways, according to Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited.
Siemens is continuing its localization strategy under the ‘Make in India’ vision of the government in order to provide integrated, cost-effective, and sustainable solutions to meet the nation’s freight and passenger transportation needs.
A total of 2.4 crore passengers use more than 22,000 trains on India’s rail network daily, making it one of the world’s largest. Aside from that, the Indian government plans to increase the share of railways in freight to 40-45% from the current 27%. Rail networks in India are almost completely electrified, making it one of the few in the world.
That is all for today on Siemens stock and its new achievement. Hope this news will be helpful. Share this piece of information with your colleagues and friends if you enjoyed it! For more stock market investing news updates, make sure to visit the Stock Updates section under the Stocks category. You can also follow us on Facebook, Instagram, Twitter, or the News Magnify Official Website. Additionally, stay connected with India news online via our Telegram Channel.
