SKF India demerger explained: Why this multibagger stock might be showing a 52% fall today
Shares of SKF India might be showing up to a 52 per cent in some trading apps today as the automotive solutions firm traded ex-demerger today.
- Oct 15, 2025,
- Updated Oct 15, 2025 9:51 AM IST
Shares of SKF India might be showing up to a 52 per cent in some trading apps today as the automobile solutions traded ex-demerger today. The Indian arm of the Swedish conglomerate has spun-off its industrial business from its automotive business. All the eligible shares of SKF India, as of the record date, will receive shares of the demerged industrial business entity in 1:1 ratio.
SKF India, engaged in manufacturing a diverse product range of bearings, seals & lubrication systems, holds a strong position in catering after-market and other maintenance products.
Shares of SKF India opened at Rs 2395.85 on Wednesday, signalling a 52.18 per cent fall from its previous close at Rs 5010.75 on Tuesday. The total market capitalization of the company stood close to Rs 11,850 crore mark. The indicated fall was due to the 'subtraction' of its industrial solutions business value from the stock.
On September 26, SKF India announced that it had received approval from NCLT to demerge its industrial solutions business as SKF India (Industrial) from existing entity SKF India Ltd. The demerged entity shall be listed at the bourses later, while the existing entity will continue to trade as usual, ex-demerger.
In its communication with the exchanges, the company announced that it will issue one share of SKF India (Industrial) with a face value of Rs 10 each to all eligible shareholders for each share held of SKF India with face value of Rs 10 each. The record date to determine eligibility for the demerged entity was fixed as Wednesday, October 15, 2025.
Tuesday, October 14, was the last to buy SKF India to become eligible to get the shares of SKF India (Industrial). The stock is under the 'T+1' settlement cycle. The record date determines the eligibility of shareholders for the given corporate action, mutually decided by the both entities. Normal trading in SKF India shares will begin after the special trading session from 10 am onwards.
Shares of SKF India (Industrial) shall be listed on the stock exchanges- BSE and NSE, subject to applicable regulations and receipt of necessary regulatory approvals. The process of obtaining listing and trading permission generally takes 45-60 days from the date of filling necessary applications with stock exchanges.
In early September 2025, ICICIDirect Research maintained its 'buy' rating on SKF India. "We believe margin pressure on account of a one-time event (demerger) is transitional. The demerger in our view will unlock value for shareholders. In Q1FY26, the industrial segment exhibited 13% YoY growth mainly led by segments and the same is likely to grow going ahead," it said.
"With a strong capex programme over FY27-FY29, we believe SKF will continue to deliver steady growth without burdening the balance sheet. We maintain BUY rating with a target of Rs 5,550 (38 times FY27E EPS)," ICICIDirect Research added.
In the bearings sector, we expect SKF to report revenue growth of 5 per cent YoY and expect margins in the range of 15-16 per cent levels as margin may drop in Q1 and Q2 due to the company's transfer pricing policy," said B&K Securities. Post Q1 earnings, Nuvama Institutional Equities trimmed its target price on SKF India with a reduced target price of Rs 5,400 (from Rs 6,000).
Shares of SKF India might be showing up to a 52 per cent in some trading apps today as the automobile solutions traded ex-demerger today. The Indian arm of the Swedish conglomerate has spun-off its industrial business from its automotive business. All the eligible shares of SKF India, as of the record date, will receive shares of the demerged industrial business entity in 1:1 ratio.
SKF India, engaged in manufacturing a diverse product range of bearings, seals & lubrication systems, holds a strong position in catering after-market and other maintenance products.
Shares of SKF India opened at Rs 2395.85 on Wednesday, signalling a 52.18 per cent fall from its previous close at Rs 5010.75 on Tuesday. The total market capitalization of the company stood close to Rs 11,850 crore mark. The indicated fall was due to the 'subtraction' of its industrial solutions business value from the stock.
On September 26, SKF India announced that it had received approval from NCLT to demerge its industrial solutions business as SKF India (Industrial) from existing entity SKF India Ltd. The demerged entity shall be listed at the bourses later, while the existing entity will continue to trade as usual, ex-demerger.
In its communication with the exchanges, the company announced that it will issue one share of SKF India (Industrial) with a face value of Rs 10 each to all eligible shareholders for each share held of SKF India with face value of Rs 10 each. The record date to determine eligibility for the demerged entity was fixed as Wednesday, October 15, 2025.
Tuesday, October 14, was the last to buy SKF India to become eligible to get the shares of SKF India (Industrial). The stock is under the 'T+1' settlement cycle. The record date determines the eligibility of shareholders for the given corporate action, mutually decided by the both entities. Normal trading in SKF India shares will begin after the special trading session from 10 am onwards.
Shares of SKF India (Industrial) shall be listed on the stock exchanges- BSE and NSE, subject to applicable regulations and receipt of necessary regulatory approvals. The process of obtaining listing and trading permission generally takes 45-60 days from the date of filling necessary applications with stock exchanges.
In early September 2025, ICICIDirect Research maintained its 'buy' rating on SKF India. "We believe margin pressure on account of a one-time event (demerger) is transitional. The demerger in our view will unlock value for shareholders. In Q1FY26, the industrial segment exhibited 13% YoY growth mainly led by segments and the same is likely to grow going ahead," it said.
"With a strong capex programme over FY27-FY29, we believe SKF will continue to deliver steady growth without burdening the balance sheet. We maintain BUY rating with a target of Rs 5,550 (38 times FY27E EPS)," ICICIDirect Research added.
In the bearings sector, we expect SKF to report revenue growth of 5 per cent YoY and expect margins in the range of 15-16 per cent levels as margin may drop in Q1 and Q2 due to the company's transfer pricing policy," said B&K Securities. Post Q1 earnings, Nuvama Institutional Equities trimmed its target price on SKF India with a reduced target price of Rs 5,400 (from Rs 6,000).