Board of Astral approves acquisition of 51% stake in operating paint biz of Gem Paints

At meeting held on 29 April 2022

The Board of Astral at its meeting held on 29 April 2022 has approved the acquisition of 51% controlling stake in operating paint business of Gem Paints.

Astral will 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.

Powered by Capital Market - Live News