The Hon’ble National Company Law Tribunal (NCLT) has sanctioned the scheme of arrangement for the demerger between SKF India Limited and SKF India (Industrial) Limited. This demerger involves separating SKF India’s industrial business into a separate entity, SKF India (Industrial) Limited, effective upon filing the order with the Registrar of Companies. The company will announce the effective and record dates separately.
Demerger Approved by NCLT
The scheme of arrangement between SKF India Limited (“Demerged Company” or “Company”) and SKF India (Industrial) Limited (“Resulting Company”) has been sanctioned by the Hon’ble National Company Law Tribunal, Mumbai Bench (“Hon’ble NCLT”). This arrangement involves the demerger of SKF India’s Industrial Business to SKF India (Industrial) Limited, as outlined in the approved scheme.
Details of the Demerger
Under the scheme, the company will demerge its Industrial Business to SKF India (Industrial) Limited. The company received the certified copy of the order on September 30, 2025. Shareholders and creditors approved the scheme previously, paving the way for this significant restructuring.
Effective Date and Future Announcements
The scheme will become effective upon filing of the certified true copy of the NCLT Order with the Registrar of Companies, Pune. Following this filing, SKF India Limited will separately notify the “Effective Date” of the Scheme and the “Record Date”. This notification will be crucial for shareholders to understand the timelines for the demerger’s implementation.
Rationale for the Demerger
The demerger aims to provide both the Automotive Business and the Industrial Business autonomous and independent segments. It enables future strategic flexibility and independently pursue different opportunities and strategies for growth with greater agility, aligned to specific market and industry dynamics. Separation of these businesses facilitates a clearer focus on distinct opportunities to enhance customer value, accelerate growth, and improve efficiency and competitiveness for both entities.
Consideration
Upon the Scheme taking effect, shareholders of the Demerged Company will receive 1 fully paid-up share of the Resulting Company (INR 10/- face value) for every 1 fully paid-up share of the Demerged Company (INR 10/- face value) held.
Previous Financials
On March 31, 2025, the audited financials of the petitioner companies, details of assets and liabilities of the First Petitioner Company pre and post Scheme as on 30.09.2025, will become available.
Source: BSE
