Astral gets nod to acquire 51% stake in Gem Paints
30th Apr 2022

Astral’s board has approved to acquire 51% controlling equity stake in Operating Paint Business of Gem Paints. Accordingly, Astral has entered into definitive agreements with Gem Paints and its shareholders.

Astral shall initially invest Rs 194 crore in Gem Paints by subscribing to Optionally Convertible Debentures equivalent to value of 51% equity stake of Operating Paint business of Gem Paints. The Operating Paint Business of Gem Paints is proposed to be demerged to a wholly owned subsidiary of Gem Paints viz. Esha Paints. Upon the completion of demerger, Astral will acquire 51% equity shares of Esha Paints against the redemption of OCDs. The name of Esha Paints is proposed to be changed to Gem Paints under the demerger scheme. The balance 49% equity stake will be acquired by Astral over a period of 5 years in tranches as per the Share Purchase Agreement entered between the parties.

Astral is among the country’s leading manufacturers of plastic pipes used across the industries and is now making strong inroads into the adhesives segment and infrastructure products.