Description
SKF India Limited is demerging its Automotive and Industrial Business into SKF India (Industrial) Limited effective October 15, 2025, with shareholders receiving 1:1 equity shares.
Summary
SKF India Limited (Exchange Ticker: 500472, SKFINDIA) is demerging its Automotive and Industrial Business into a new entity called SKF India (Industrial) Limited, effective from the start of trading hours on Wednesday, October 15, 2025. Shareholders of SKF India Limited will receive 1 equity share of SKF India (Industrial) Limited for every 1 equity share held. A Special Pre-Open Session (SPOS) will be held on October 15, 2025, to enable price discovery for SKF India Limited post-demerger. The newly formed entity will be added to multiple BSE indices at zero price without divisor adjustment.
Key Points
- SKF India Limited is demerging its Automotive and Industrial Business into SKF India (Industrial) Limited
- Demerger effective from start of trading on Wednesday, October 15, 2025
- Shareholders receive 1:1 equity shares (1 share of SKF India (Industrial) Limited for every 1 share of SKF India Limited held)
- SKF India (Industrial) Limited expected to list on BSE at a future date
- Special Pre-Open Session (SPOS) scheduled for October 15, 2025, for price discovery of SKF India Limited post-demerger
- SKF India (Industrial) Limited will be added to 11 BSE indices at zero price after close of October 14, 2025
- Addition to indices will be without divisor adjustment
Regulatory Changes
This circular implements a scheme of arrangement involving the demerger of SKF India Limited. The regulatory framework allows for the addition of the newly created entity to BSE indices at zero price without divisor adjustment to maintain index continuity during corporate restructuring.
Compliance Requirements
- BSE will conduct a Special Pre-Open Session (SPOS) on October 15, 2025, for SKF India Limited
- Market participants should note the addition of SKF India (Industrial) Limited to multiple BSE indices
- Shareholders of SKF India Limited will automatically receive shares of the new entity in 1:1 ratio
- Queries regarding the index changes should be directed to bseindex@bseindia.com
Important Dates
- October 9, 2025: Circular notice date
- October 14, 2025: Last trading day before demerger takes effect (close of trading)
- October 15, 2025:
- Demerger effective from start of trading hours
- Special Pre-Open Session (SPOS) for SKF India Limited
- SKF India (Industrial) Limited added to BSE indices at zero price
- Future date (TBA): Expected listing date for SKF India (Industrial) Limited equity shares on BSE
Impact Assessment
Market Impact: High - This demerger represents a significant corporate restructuring that will create two separate listed entities from one existing company. The 1:1 share allocation ratio means shareholders will hold positions in both entities post-demerger.
Index Impact: The addition of SKF India (Industrial) Limited to 11 BSE indices (BSE 500, BSE Capital Goods, BSE Smallcap, BSE Allcap, BSE Industrials, BSE Smallcap Select Index, BSE 250 Smallcap Index, BSE 400 MidSmallcap Index, BSE 1000, BSE 1000 Multicap Equal Size Weighted 25%, and BSE MidSmallcap) at zero price without divisor adjustment ensures index continuity while accommodating the corporate action.
Trading Impact: The Special Pre-Open Session on October 15, 2025, is crucial for establishing the post-demerger price of SKF India Limited, allowing market forces to determine fair value after the business separation.
Investor Impact: Shareholders will need to track two separate entities going forward, with potential tax implications and portfolio rebalancing considerations. The exact listing date for the new entity remains to be announced, which may create temporary uncertainty regarding liquidity and valuation of the demerged entity.
Impact Justification
Major corporate restructuring involving demerger of a listed company, addition to multiple BSE indices, and special pre-open session for price discovery affecting shareholders and index constituents.