Description

SKF India Limited demerger scheme approved by NCLT Mumbai. Record date set for October 15, 2025. Shareholders to receive 1:1 equity shares in SKF India (Industrial) Limited.

Summary

SKF India Limited (Scrip Code: 500472) has set October 15, 2025 as the record date for its demerger scheme approved by the National Company Law Tribunal (NCLT), Mumbai Bench. The Automotive and Industrial Business Undertaking will be demerged into a new entity, SKF India (Industrial) Limited. Shareholders will receive 1 fully paid-up equity share of Rs.10/- in the resulting company for every 1 share held in SKF India Limited. Trading will move from ‘A’ Group to ‘T’ Group from October 15, 2025, with the scrip participating in Call Auction under Special Pre-open Session (SPOS).

Key Points

  • Record date for demerger: October 15, 2025
  • Ex-entitlement date: October 15, 2025 (Settlement No. DR-736/2025-2026)
  • Demerged Company: SKF India Limited (Scrip Code: 500472)
  • Resulting Company: SKF India (Industrial) Limited (new entity)
  • Share exchange ratio: 1:1 (one equity share of Rs.10/- in resulting company for every one equity share of Rs.10/- in demerged company)
  • Demerger scope: Automotive and Industrial Business Undertaking
  • NCLT Mumbai Bench has approved the Scheme of Arrangement
  • Trading group transfer: From ‘A’ Group to ‘T’ Group effective October 15, 2025
  • Special trading arrangement: Call Auction in Pre-open Session (SPOS) on October 15, 2025
  • Equity shares of SKF India (Industrial) Limited will be listed on BSE Limited subject to compliance with requisite formalities

Regulatory Changes

Pursuant to SEBI Circular No. SEBI/Cir/ISD/1/2010 dated November 2, 2010, the equity shares of SKF India Limited will be transferred from ‘A’ Group to ‘T’ Group with effect from October 15, 2025.

Pursuant to SEBI Circular No. CIR/MRD/DP/01/2012 dated January 20, 2012, the scrip will be part of Call Auction in Pre-open Session (Special Pre-open Session - SPOS) on October 15, 2025. Trading members should refer to Exchange notice no. 20120216-29 dated February 16, 2012 on Enabling Special Pre-open Session for further details.

Compliance Requirements

  • Trading members must be aware of the group transfer from ‘A’ to ‘T’ Group effective October 15, 2025
  • Trading members should familiarize themselves with Special Pre-open Session (SPOS) procedures for October 15, 2025
  • Shareholders must hold shares as of the record date (October 15, 2025) to be entitled to receive shares in the resulting company
  • SKF India (Industrial) Limited must complete requisite formalities for listing on BSE Limited
  • Depository participants and trading members should process the allotment of shares in the resulting company to eligible shareholders

Important Dates

  • October 8, 2025: Circular notice date
  • October 15, 2025: Record date for determining shareholder entitlement
  • October 15, 2025: Ex-entitlement date (Settlement No. DR-736/2025-2026)
  • October 15, 2025: Transfer of trading from ‘A’ Group to ‘T’ Group
  • October 15, 2025: Special Pre-open Session (SPOS) for the scrip

Impact Assessment

Impact on Shareholders: All shareholders holding SKF India Limited shares on the record date will receive an equal number of shares in SKF India (Industrial) Limited at a 1:1 ratio. This corporate action will result in shareholders holding two separate entities post-demerger.

Impact on Trading: The scrip will experience significant trading restrictions as it moves to the ‘T’ Group, which is typically used for corporate actions and special trading arrangements. The Special Pre-open Session (SPOS) on October 15, 2025 will impact normal trading procedures, with price discovery occurring through call auction mechanism.

Impact on Market: The demerger separates the Automotive and Industrial Business Undertaking into a distinct entity, allowing for focused business operations and potentially improved valuation transparency for each business segment. The listing of SKF India (Industrial) Limited will add a new security to the BSE platform.

Operational Impact: Brokers, depositories, and clearing corporations will need to process the allotment and credit of shares in the resulting company to eligible shareholders. The move to T Group requires adjusted trading protocols and risk management procedures for trading members.

Impact Justification

Major corporate restructuring involving demerger of automotive and industrial businesses with 1:1 share issuance ratio affecting all shareholders. Trading moves to T group with special pre-open session.