SKF India (500472) Status Update summary

Meeting overview and structure

• NCLT convened a virtual meeting to consider a scheme of arrangement involving the demerger of the industrial business from the listed entity into a new company, with all regulatory and legal requirements followed.

• Board members, auditors, and scrutinizers were introduced, and quorum was confirmed as per legal standards.

• Shareholders were provided with remote and live e-voting options, and meeting documents were made available electronically.

Scheme of arrangement details

• The demerger will transfer the industrial business to a new entity, with shareholders receiving one share in the new company for each share held in the original.

• The share entitlement ratio was validated as fair by an independent merchant banker, and new shares will be listed on BSE and NSE.

• The process is expected to conclude by Q4 2025, pending NCLT and regulatory approvals.

Shareholder engagement and key questions

• Shareholders raised questions on demerger costs, employee treatment, business benefits, group structure, CapEx changes, and future business models.

• Management clarified that costs are being accumulated and billed to the listed entity, with allocation principles based on historical profits.

• Employees will be allocated to the respective new entities, with a commitment to continuity and care.