Description

SKF India Ltd announces demerger of Automotive and Industrial Business Undertaking into SKF India (Industrial) Limited with 1:1 share allotment ratio. Record date fixed as October 15, 2025.

Summary

SKF India Ltd (Scrip Code 500472) has set October 15, 2025 as the record date for its court-approved demerger scheme. The Automotive and Industrial Business Undertaking will be demerged into SKF India (Industrial) Limited. Shareholders will receive 1 fully paid-up equity share of Rs.10/- each in the resulting company for every 1 equity share held in SKF India Ltd. The stock will be transferred from ‘A’ Group to ‘T’ Group and will undergo Special Pre-open Session (SPOS) on the record date.

Key Points

  • Record date for demerger: October 15, 2025
  • Ex-entitlement date: October 15, 2025 (Settlement No. DR-736/2025-2026)
  • Share exchange ratio: 1:1 (one share in resulting company for every one share in demerged company)
  • Demerged Company: SKF India Ltd (Scrip Code 500472)
  • Resulting Company: SKF India (Industrial) Limited
  • Business being demerged: Automotive and Industrial Business Undertaking
  • Scheme approved by Hon’ble National Company Law Tribunal, Mumbai Bench
  • Face value: Rs.10/- per equity share for both companies

Regulatory Changes

  • SKF India Ltd equity shares will be transferred from ‘A’ Group to ‘T’ Group effective October 15, 2025 (pursuant to SEBI Circular No. SEBI/Cir/ISD/1/2010 dated November 2, 2010)
  • The scrip will be part of Call Auction in Pre-open Session (Special Pre-open Session - SPOS) on October 15, 2025 (pursuant to SEBI Circular No. CIR/MRD/DP/01/2012 dated January 20, 2012)
  • Trading members should refer to Exchange notice no. 20120216-29 dated February 16, 2012 for SPOS details

Compliance Requirements

  • Trading members must note the transfer of SKF India Ltd from ‘A’ Group to ‘T’ Group from October 15, 2025
  • Special trading arrangements under SPOS will apply on the record date
  • The resulting company (SKF India (Industrial) Limited) will be listed on BSE Limited subject to compliance with requisite formalities
  • Shareholders must be registered as of the record date (October 15, 2025) to be entitled to receive shares in the resulting company

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 to ‘T’ Group effective date
  • October 15, 2025: Special Pre-open Session (SPOS) date

Impact Assessment

Shareholder Impact: All shareholders holding equity shares in SKF India Ltd as of the record date will receive equivalent shares in the newly formed SKF India (Industrial) Limited on a 1:1 basis. This will result in shareholders owning stakes in two separate companies post-demerger.

Trading Impact: The transfer to ‘T’ Group and implementation of Special Pre-open Session indicates heightened regulatory oversight during the demerger process. Trading will be restricted to call auction format during SPOS on October 15, 2025, which may impact liquidity and price discovery.

Market Impact: This is a significant corporate restructuring that will create a new listed entity. The resulting company will be listed on BSE Limited, expanding the number of investable securities in the SKF group.

Operational Impact: The demerger separates the Automotive and Industrial Business Undertaking into a focused entity, potentially allowing for better operational management and strategic focus for both companies post-separation.

Impact Justification

Major corporate restructuring involving demerger of SKF India's business undertaking with significant impact on shareholders who will receive shares in new entity on 1:1 basis. Stock transfers to T group with special trading arrangements.