India — SKF India Limited has announced that October 15, 2025 will be the record date for its demerger, which splits off its industrial business into a new company, SKF India (Industrial) Limited. As of that date, every shareholder in the existing SKF India will receive one fully paid equity share in the new industrial entity for each share they hold in the current company.
Key Details of the Demerger
- Record Date: October 15, 2025 — who holds SKF India shares on this date is eligible for the new entity’s shares.
- Share Entitlement: A 1:1 ratio — for each share of SKF India, shareholders receive one share of SKF India (Industrial).
- Rationale: The demerger aims to create two independent, focused companies — one concentrating on the automotive segment and the other on industrial products. This separation is intended to unlock distinct growth potential in each vertical.
- Regulatory Approval: The demerger has already been approved by SKF India’s board and shareholders, and sanctioned by the National Company Law Tribunal (NCLT).
- Timeline & Listing: The demerger was formally completed on October 1, 2025. The new industrial company is expected to be listed by November 2025, subject to all required regulatory and stock exchange approvals.
What It Means for Investors & the Business
This demerger gives shareholders a direct stake in both the automotive arm and the newly formed industrial business, enabling clearer valuation and targeted strategy execution. Investors can now assess each business independently — industrial operations can attract capital and management focus specific to that sector, while the automotive business can sharpen its market positioning without being encumbered by the industrial side’s dynamics.
By separating the entities, SKF India aims to:
- Enhance operational focus in each domain
- Improve financial transparency and valuation
- Attract sector-specific investors
- Enable tailored growth strategies for industrial and automotive lines
Disclaimer:
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