Description

SKF India Limited is demerging its Automotive and Industrial Business into SKF India (Industrial) Limited effective October 15, 2025. Shareholders will receive 1 equity share of the new entity for every 1 share held.

Summary

SKF India Limited (Exchange Ticker: 500472, “SKFINDIA”) is demerging its Automotive and Industrial Business into a new entity, SKF India (Industrial) Limited, effective from the start of trading hours on Wednesday, October 15, 2025. Shareholders will receive 1 equity share of SKF India (Industrial) Limited for every 1 equity share held in SKF India Limited. A Special Pre-Open Session (SPOS) will be conducted on October 15, 2025, to enable price discovery for SKF India Limited post-demerger. SKF India (Industrial) Limited will be added to multiple BSE indices at zero price effective October 15, 2025.

Key Points

  • SKF India Limited is demerging its Automotive and Industrial Business into SKF India (Industrial) Limited
  • Shareholders will receive 1:1 equity shares in the new demerged entity
  • Demerger effective from start of trading on Wednesday, October 15, 2025
  • Special Pre-Open Session (SPOS) scheduled for October 15, 2025, for price discovery of SKF India Limited post-demerger
  • SKF India (Industrial) Limited equity shares expected to list on BSE at a future date (date not yet announced)
  • New entity will be added to 11 BSE indices at zero price without divisor adjustment

Regulatory Changes

No regulatory framework changes. This is a corporate action under a scheme of arrangement approved for SKF India Limited.

Compliance Requirements

For Market Participants:

  • Prepare for Special Pre-Open Session on October 15, 2025
  • Adjust portfolios and systems to reflect the demerger and new entity
  • Update holdings to reflect 1:1 share allocation in SKF India (Industrial) Limited

For Index Users:

  • Note the addition of SKF India (Industrial) Limited to multiple BSE indices at zero price
  • No divisor adjustment will be made for the index additions

For Queries:

Important Dates

  • October 9, 2025: Notice date and circular publication
  • October 14, 2025: Last trading day before demerger (close of business)
  • October 15, 2025: Demerger effective date (start of trading hours)
  • October 15, 2025: Special Pre-Open Session for price discovery of SKF India Limited
  • October 15, 2025: 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 impact corporate action affecting all shareholders of SKF India Limited
  • Special price discovery session required to establish fair market price post-demerger
  • Immediate impact on 11 BSE indices with addition of new entity at zero price

Index Impact: SKF India (Industrial) Limited will be added to the following BSE indices effective October 15, 2025:

  1. BSE 500
  2. BSE Capital Goods
  3. BSE Smallcap
  4. BSE Allcap
  5. BSE Industrials
  6. BSE Smallcap Select Index
  7. BSE 250 Smallcap Index
  8. BSE 400 MidSmallcap Index
  9. BSE 1000
  10. BSE 1000 Multicap Equal Size Weighted (25%)
  11. BSE MidSmallcap

Investor Impact:

  • Shareholders will maintain economic interest through 1:1 share allocation
  • Portfolio rebalancing may be required based on investment strategy
  • Price volatility expected during Special Pre-Open Session
  • Future listing of demerged entity shares will provide liquidity and separate valuation

Impact Justification

Major corporate restructuring involving demerger of a listed company, requiring special price discovery session and multiple index additions for the new entity