This is to inform you that we have received order for convening EGM of equity shareholders of SKF India Limited passed by National Company Law Tribunal, Mumbai (NCLT) regarding the scheme ....
Awaiting price reaction for this filing.
SKF India Limited has received an NCLT Mumbai order dated June 4, 2025, directing it to convene a meeting of its 60,295 equity shareholders to approve the Scheme of Arrangement for demerger of its Industrial Business into wholly owned subsidiary SKF India (Industrial) Limited. The swap ratio is 1:1, meaning shareholders will get 1 equity share of the Resulting Company for every 1 share held in SKF India. Both BSE and NSE had already given their no-objection on March 28, 2025, and the Board had approved the scheme on December 26, 2024. The rationale is to separate the Automotive and Industrial businesses for sharper strategic focus, independent capital allocation, and unlocking shareholder value. Shareholder voting will happen via remote e-voting and e-voting during the meeting (to be held within 60 days through video conferencing).
If approved, SKF India shareholders will hold shares in both the listed Demerged Company (automotive) and the new Resulting Company (industrial), giving them direct exposure to two focused businesses. The 1:1 swap is neutral on share count, but could unlock value through separate listing and investor base, while the demerger itself is unlikely to have an immediate material impact on the stock until shareholder and regulatory approvals are completed.