SKF India rises 6% after the Board’s approval of a unit demerger, marking a strategic shift in its operations. The share price of SKF India went up 6.2% on Wednesday after the board of the company agreed to demerge its industrial and automotive divisions. The intraday high of the company’s share touched a fresh lifetime high of Rs 5,500 per share.
Around 11:28 AM, the SKF India share was quoted at Rs 5,345.20, a 3.3% rise. The BSE Sensex also traded on the positive side, up 0.78% to 82,272.59 simultaneously.
According to a regulatory filing, “the board has given its in-principle approval to demerge the automobile and industrial business through the scheme of arrangement.” The corporate restructuring committee has been authorized to take the steps required to make all the preparatory work for the detailed demerger plan.
In the proposed demerger, the authorized share capital of this new, separate wholly-owned subsidiary undertaking representing the industrial business shall be Rs 15 lakh divided into 150,000 equity shares of Rs 10 each. SKF India shall retain full ownership of said industrial entity’s issued and subscribed share capital.
In a standalone filing on 17, the parent entity of SKF India, AB SKF, said it would initiate the global separation of its automotive business. It intends to gain a separate listing of this business on Nasdaq Stockholm with the help of a Lex Asea distribution as part of the effort to make the first half of 2026.
The rationale for the demerger is to enable each business unit to focus on its specific opportunities and thereby optimize customer value, accelerate growth, and drive greater efficiency and competitiveness overall. The move should allow the automotive division to respond faster than ever before to changes in the worldwide landscape of automobiles and make independent decisions on investment.
While so doing, the more specialized industrial company should strengthen it in strategy implementation and resource distribution. This should facilitate SKF to serve better its industrial customers, grow faster, increase productivity, and increase responsiveness for the end user’s benefit.
SKF India is known for its engineered solutions across both automotive and industrial sectors on five technology-centric platforms: bearings and units, seals, lubrication, condition monitoring, and maintenance services. In the previous fiscal year, SKF India shares declined 2.2 percent. It is compared to the BSE Sensex, which has climbed 25 percent. However, SKF India rises as it implements strategic decisions, boosting investor confidence.
