The Hindu Business Line : SKF India board to consider delisting

THE stock of SKF India Ltd, part of the global bearings maker SKF Group, closed 13.58 per cent higher at Rs 188.65 a share on the BSE on Friday on news that the company's Swedish promoters would delist shares from Indian bourses.

SKF India Ltd informed the stock exchanges that its board of directors will meet on February 16, to consider the buyback proposal received from Aktiebolaget SKF together with its subsidiaries (collectively referred to as the SKF Group).

The SKF Group is the largest stakeholder in the company, holding 53.58 per cent equity shares. The group plans to acquire full ownership of SKF India by purchasing outstanding publicly held shares to integrate the Indian subsidiary's operation with itself.

"Full ownership of the company will give SKF increased operational flexibility to support the development of its business and to fully integrate the operations within the SKF Group," the group has said on its international Web site.

The news was out before the Indian share markets opened this morning, driving the shares of SKF India that were trading at an average of between Rs 140 and 149 a share since the beginning of the quarter to a high of Rs 199.3 a share earlier today, before closing at Rs 188.65 a share.

Over 12.95 lakh SKF India shares were traded on the National Stock Exchange while the BSE saw 5.59 lakh shares traded.

SKF India has 1,968 employees on its roll with two units to manufacture bearings, one in Pune and other in Bangalore.

The offer to purchase the outstanding shares is subject to approval by SKF India's shareholders to delist the company, it said.

SKF group is a leading player in rolling bearing, seals and related business.

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SKF India board to consider delisting