Astral set to acquire 51% shares of Gem Paint for Rs. 194cr

Astral set to acquire 51% shares of Gem Paint for Rs. 194cr

PVC pipes and plastic products maker Astral will acquire a 51 percent stake in Gem Paints for Rs 194 crore. It will allow the Ahmedabad-based venture to expand its product portfolio into the paints segment.

 Astral has entered into a definitive agreement with Gem Paints and its shareholders after the deal will be approved by the board on Friday, as per the filling released.  

Astral will initially invest Rs. 194 Crores in Gem Paints Private Ltd. by subscribing to Optionally Convertible Debentures consecutively to the value of 51 percent equity stake of Operating Paint business of Gem Paints.

The deal is supposed to be an all-cash deal. The remaining 49 percent equity stake will be acquired by Astral over five years under different conditions, as per the Share Purchase Agreement.

 The operating paint business of Gem Paints is proposed to be demerged to a wholly-owned subsidiary — Esha Paints.

 “Upon the completion of the merger, Astral will control 51 percent equity shares of Esha Paints against the redemption of OCDs.

The name Esha Paints Private Limited is proposed to be changed to Gem Paints under the merger scheme. The deal will be finalized after the split is scheduled for March 31, 2023.

 Established in January 1980, Gem Paints specializes in the manufacture and supply of paints, varnishes, coatings, interior decoration-related products, and industrial paints.

 Its provisional revenue for fiscal year 202122 is Rs 215 crore.

 Astral Engineer MD Sandeep said, “The acquisition of Gem P Paint will be a fine addition to Astral’s shopping cart portfolio, and I am confident it will take the value of the Astral brand to the next level and strengthen the confidence of the company’s builders and architects., Consultants, Dealers, and Distributors thanks to the synergy of the products in the network. Water and drainage in CPVC, PVC, and DWC grades. It is also one of the major players in adhesives and sealants products in India and abroad.

 Astral entered the adhesives portfolio in 2014 by acquiring UK-based Seal It Services Ltd and Resin ova Chemical Limited.

 In the fiscal year 202021, Astral’s revenue was Rs 2,486.30 crore.

ABOUT ASTRAL

 ASTRAL is a pioneer in manufacturing CPVC piping in India. The company manufactures pro India plumbing and drainage systems in CPVC, PVC, and DWC categories. From introducing CPVC piping in India to introducing many innovative piping solutions.

Astral Pipes today offers the broadest range of pipes and fittings for significant applications; that also includes specialized products needed in infrastructure development.

Astral is one of the Leading Player in Adhesive & Sealant Products in India and abroad. Astral entered the Adhesives category in 2014 by acquiring UK-based Seal It Services Ltd and Resinova Chemicals Limited (Kanpur, India).

Astral manufactures a wide range of adhesives, sealants, fillers, and construction aids. Recently, the company imported plastic water tanks and is expected to import them soon in the field of hygiene and business faucets. Today, Astral is one of the fastest growing company’s portfolio of building materials and is already a prominent brand.

Astral deploys the best in global technologies and responds to the emerging needs of millions of households, and adds a road to India’s burgeoning real estate brotherhood with a mark of unparalleled quality and Innovative building materials solutions. Astral has 11 manufacturing sites in India and 3 in another country.



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