SKF India Share Price Falls 52% Post-Demerger; Here’s What Actually Happened

October 15, 2025, Mumbai: The shares of SKF India Limited experienced a notional fall of around 52% from the previous closing price of ₹5008.40, trading at around ₹2400 per share at 10:45 AM. The impact on the share prices can be attributed to the demerger exercise that was approved by the NCLT earlier. As per the demerger, one fully paid-up equity share of ₹10 each in SKF India (Industrial) Limited was offered to the shareholders holding one share held in SKF India Limited. Based on this scheme, the company’s industrial business is now a new listed entity: SKF India (Industrial) Limited, whereas the parent retains the automotive segment.

Record Date and Listing Plan

SKF India has fixed October 15, 2025, as the record date to determine eligible shareholders entitled to receive shares of the newly formed SKF India (Industrial) Limited. The new company’s shares are proposed to be listed on both BSE and NSE following the receipt of regulatory approvals.

Market Reaction and Indicative Price Movement

As previously noted, an ex-demerger adjustment led to a notional decline of around 52%. At 10:45 AM, the stock traded at ₹2,277.80, reflecting a 0.91% drop from the previous close and the notional fall due to the demerger. This price adjustment reflects the carved-out value of the industrial business, which has been transferred to the newly formed SKF India (Industrial) Limited.

Business Structure After Demerger

Post-demerger, SKF India Limited will retain the automotive and related businesses, including bearings, seals, and lubrication systems for vehicles, while the newly formed SKF India (Industrial) Limited will handle the industrial, energy, and manufacturing sectors.

The company said the split aims to create independent, focused entities capable of pursuing distinct growth strategies, attracting sector-specific investors, and enhancing operational flexibility.

Why the 52% Drop Isn’t a Crash

The 52% fall in SKF India’s quoted price represents a technical adjustment rather than a real loss. Investors now hold ownership in two entities: the parent company (automotive business) and the new industrial business. The combined market value of these will reflect the company’s total worth post-listing.

REF:https://nsearchives.nseindia.com/corporate/SKFINDIA23_01102025173627_NSE.pdf

https://nsearchives.nseindia.com/corporate/SKFINDIA25_02102025134944_NSE.pdf

https://nsearchives.nseindia.com/corporate/SKFINDIA23_30092025195001_NSE.pdf

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