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SKF India’s Board Approves Demerger of Industrial Business

Updated on: Dec 30, 2024, 1:35 PM IST
SKF India Ltd. approved a scheme of arrangement to demerge its Industrial Business into a wholly owned subsidiary, creating two publicly traded companies with mirror shareholding.
SKF India’s Board Approves Demerger of Industrial Business
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SKF India Ltd., founded in 1961, is a prominent manufacturer of bearings and related products in India. As a subsidiary of AB SKF, a Swedish company established in 1907, SKF India has made substantial contributions to both the industrial and automotive sectors.

SKF India and SKF India (Industrial) Limited Demerger

In a meeting held on December 26, 2024, the Board of Directors of SKF India approved a Scheme of Arrangement involving SKF India and SKF India (Industrial) Limited, as detailed in recent regulatory filings with the stock exchanges. 

The Scheme outlines the demerger of SKF India’s Industrial Business into SKF India (Industrial) Limited, which will be a wholly-owned subsidiary of the company.

This Demerged undertaking, or industrial business, includes all operations, activities, and properties related to the manufacturing, trading, marketing, and provision of products, solutions, and services in areas such as rolling bearings, seals, rotating shaft services, and lubrication systems. 

It serves various industries, including railways, defence, wind energy, and metal production, among others.

SKF India Ltd Q2 FY25 Results

SKF India reported a steady financial performance in Q2 FY25, with revenue from operations rising by 10.6% year-on-year to ₹1,244 crores, up from ₹1,125 crores in Q2 FY24. The company also posted a modest 4.4% increase in net profit, which grew from ₹90 crores to ₹94 crores during the same period, reflecting consistent growth in its operations and profitability.

Share Price and Performance

SKF India Ltd.’s shares were trading at ₹4,523.50 on the NSE at 12:24 PM today, after hitting an intraday high of ₹4,580.10. While the stock has delivered strong six-month returns of 31.4%, it has faced a year-to-date decline of 2.5% and a negative annual return of 2.4%, highlighting mixed performance trends in 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Dec 30, 2024, 1:35 PM IST

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