Astral Limited has approved a Composite Scheme of Arrangement involving the demerger of its Chemicals Business into wholly owned subsidiary Astral Chemie Limited and the amalgamation of another wholly owned arm, Al-Aziz Plastics Private Limited, into itself.
The board cleared the scheme at its meeting held on June 25, 2026. The Chemicals Business, comprising adhesives, sealants, construction chemicals, and specialty chemical products, will be transferred to Astral Chemie on a going concern basis. This undertaking generated a turnover of Rs 1,266.30 crore in FY26, representing 21% of Astral's total revenue.
Under the share entitlement plan, Astral shareholders will receive one equity share of Rs 1 face value in Astral Chemie for every one equity share of Rs 1 face value held in Astral. Astral's existing equity shares in Astral Chemie will be cancelled. Post-scheme, the shareholding pattern of Astral Chemie will mirror that of Astral, with promoters and promoter group holding 54.22% and the public 45.78%.
The equity shares of Astral Chemie will be listed on the National Stock Exchange of India and BSE Limited subject to regulatory approvals. Astral Chemie currently operates a paints and coatings business serving residential, commercial, and industrial segments. The demerger will consolidate the Chemicals Business of Astral with this existing paints and coatings platform.
Al-Aziz Plastics, which reported a turnover of Rs 37.30 crore and net worth of Rs 21.50 crore for FY26, will amalgamate into Astral. The shares of Al-Aziz Plastics held by Astral will be extinguished without consideration, and the transferor company will be dissolved. Al-Aziz Plastics manufactures electrofusion fittings, compression fittings, saddles, and allied products that complement Astral's plumbing business.
Astral Limited recorded a standalone total turnover of Rs 5,907.60 crore and net worth of Rs 4,105.80 crore for FY26. The scheme is subject to approvals from the National Company Law Tribunal, SEBI, the stock exchanges, shareholders, creditors, and other statutory and regulatory authorities.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.