Astral Limited has entered into definitive agreements to acquire 51% stake in Operating paint business of Gem Paints from Gem Paints Limited.
August 31, 2023
Share
Astral Limited (BSE:532830) has entered into definitive agreements to acquire 51% stake in Operating paint business of Gem Paints from Gem Paints Limited for INR 1.9 billion on April 1, 2022. INR 1940 million for 51% equity stake of Operating Paint Business of Gem Paints to be acquired post demerger of Operating Paint Business of Gem Paints Private Limited. The Operating Paint Business of Gem Paints Private Limited is proposed to be demerged to a wholly owned subsidiary of Gem Paints Private Limited viz. Esha Paints Private Limited. Upon the completion of demerger, Astral will acquire 51% equity shares of Esha Paints Private Limited against the redemption of OCDs. 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. Upon completion of demerger of Operating Paint Business of Gem Paints, Astral shall acquire 51% equity stake of Resulting Company (Esha Paints Private Limited). Astral Board of Directors in their meeting held today approved to acquire 51% controlling equity stake in Operating Paint Business of Gem Paints Private Limited. As of July 17, 2023, National Company Law Tribunal, Bengaluru Bench sanctioned the Scheme of Arrangement (Scheme) between Gem Paints Private Limited (transferor company) and Esha Paints Private Limited (Transferee Company) and their respective shareholders and creditors. The acquisition of 51% equity stake in the Operating Paint Business of Gem Paints Private Limited is expected upon completed upon completion of demerger March 31, 2023 (tentative). Rajeev Vidhani and Anand Mehta of Khaitan & Co. provided due diligence to Astral Limited.
Astral Limited (BSE:532830) has entered into definitive agreements to acquire 51% stake in Operating paint business of Gem Paints from Gem Paints Limited on August 1, 2023. The name of Esha Paints Private Limited stands changed to Gem Paints Private Limited subject to necessary approvals. 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 Limited is an India-based pipe company. The Company is engaged in manufacturing plumbing and drainage systems in India. The Companyâs segments include Plumbing and Adhesives. The Plumbing segment includes pipes, water tank, faucets and sanitaryware. The Companyâs products include plumbing pipes & fittings, sewerage drainage pipes & fittings, agriculture pipes & fittings, water tanks, industrial pipes & fittings, cable protection, urban infrastructure, fire sprinklers pipes & fittings, ancillary products, solvent cement, insulation tube and specialty fittings. The plumbing pipes & Fittings products include Astral CPVC PRO, Astral Pex-a PRO, Astral Multi PRO, Astral Aquarius and Astral ECO PRO. The cable protection products include MultiRex, Wire Guard and TeleRex. Its pipes manufacturing units are: Santej, Gujarat; Dholka, Gujarat; Hosur, Tamil Nadu; Ghiloth, Rajasthan; Sangli, Maharashtra; Aurangabad, Maharashtra; Cuttack, Odisha, and Sitarganj, Uttarakhand.