Did SKF India shares really crash 54% in intraday trade? Here’s the truth – News Air Insight

Shares of SKF India appeared to have plunged 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 fall in the share price was in response to the adjustment to the demerger of its automotive business from the industrial division.

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

The decline follows the company’s restructuring move, which involved splitting its operations into two independent entities, one focusing on the automotive segment and the other on the industrial business.

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

SKF India demerger details

Post-demerger, the existing SKF India shares now represent the automotive business, while the shares of the newly formed industrial entity are expected to list on stock exchanges in November 2024.

In an earlier statement, the company said the move was designed 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 held in the parent entity. “The rationale reflects a considered approach—aligning with India’s dual priorities of sustainable mobility and industrial competitiveness, enhancing financial visibility, and improving agility to respond to market dynamics,” the company noted.

SKF India demerger record date

The company fixed October 15 as the record date for determining shareholder eligibility for the demerger. On the preceding trading day, October 14, SKF India’s stock closed at Rs 5,008.40 per share.

Following the adjustment, the stock hit a low of Rs 2,276.10 on October 15, marking a notional drop of over 54% in value.

However, after accounting for the demerger, the actual decline stood at only 5% in market-adjusted terms. The move represents a routine recalibration of the stock’s valuation post-demerger, reflecting the new standalone business structure.

Also read: LG share price target at Rs 2,050? Korean giant sparks record frenzy with 8 buy calls on Day 1

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)