The National Company Law Tribunal (NCLT) has sanctioned the Scheme of Arrangement between SKF India Limited and SKF India (Industrial) Limited, effective September 26, 2025. This allows for the demerger of the company’s Industrial Business. Shareholders of SKF India will receive shares in the Resulting Company. The move aims to enhance strategic flexibility and unlock value for shareholders. The new entity’s shares will be listed on the BSE and NSE.
Demerger of Industrial Business Approved
The Scheme of Arrangement between SKF India Limited (“Demerged Company”) and SKF India (Industrial) Limited (“Resulting Company”) has been sanctioned by the Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench, as of September 26, 2025. This facilitates the demerger of SKF India’s Industrial Business to SKF India (Industrial) Limited.
Shareholder Implications
Under the scheme, shareholders of SKF India Limited, as of the record date, will receive one fully paid-up share of SKF India (Industrial) Limited for every one fully paid-up share held in SKF India Limited. The face value of each share is INR 10. The shares of the Resulting Company will be listed on the BSE and NSE.
Strategic Rationale
The demerger aims to create autonomous and independent automotive and industrial business segments. This will enable future strategic flexibility, focused management, and the pursuit of different opportunities for growth. The goal is to increase customer value, improve efficiency, and enhance competitiveness for both the businesses. Furthermore, the scheme will allow both businesses to tailor capital deployment and adapt faster to global trends.
Key Scheme Details
The scheme provides for the transfer of the Demerged Undertaking of the Demerged Company into the Resulting Company on a going concern basis. This transfer and vesting would be in the best interests of all stakeholders. The appointed date is the Effective Date or such date mutually decided by the boards.
The NCLT order for the scheme was pronounced on September 26, 2025.
Source: BSE
