Have SKF India shares really fallen 54% in intraday trading? Here’s the truth

Shares of SKF India appeared to have fallen over 54% in a single session on Wednesday, October 15, as the stock opened at Rs 2,395.85 on the BSE today after closing the previous session at Rs 5,010.75. This share price decline was in response to the adjustment to the split of the automotive activities from the industrial division.

In reality, the stock fell 5% to hit the lower circuit at Rs 2,276.10 after the price adjustment.

The decline follows the company’s restructuring, which saw its operations split into two independent entities, one focused on the automotive segment and the other on industrial operations.

The demerger, which was approved by SKF India’s board earlier in 2024, became effective on October 1, with October 15 set as the record date for determining shareholder eligibility.

Details on the demerger of SKF India

Post-demerger, SKF India’s existing shares now represent the automotive sector, while the shares of the newly formed industrial entity are expected to go public in November 2024.

In an earlier statement, the company said the move was intended to sharpen strategic focus and unlock long-term value by creating two “fit-for-purpose” organizations with dedicated management teams, capital allocation frameworks and sector-specific priorities. Each shareholder will receive one share of SKF India (Industrial) for every share he holds in the parent company. “The rationale reflects a measured approach – aligning with India’s twin priorities of sustainable mobility and industrial competitiveness, increasing financial visibility and improving agility to respond to market dynamics,” the company said.

SKF India demerger registration date

The company has set October 15 as the record date for determining whether shareholders are eligible for the split. On the previous trading day, October 14, SKF India’s shares closed at Rs 5,008.40 per share.

After the adjustment, the stock hit a low of Rs 2,276.10 on October 15, marking a theoretical depreciation of over 54%.

However, after taking the split into account, the actual market-adjusted decline was only 5%. This move represents a routine recalibration of the stock’s post-split valuation, reflecting the new standalone corporate structure.

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