Astral Shares Slide 10% After Chemicals Demerger Announcement

Astral Limited shares slips on 29 June, down 10%, after the firm announced a plan to split its chemicals business into a new listed entity.

The board has approved what it calls a Composite Scheme of Arrangement. In plain terms: Astral will carve out its entire chemicals portfolio, which includes adhesives, sealants, construction chemicals, paints and coatings, and move it into a new company called Astral Chemie Limited.

That new entity will then list on both NSE and BSE as an independent business. For existing shareholders, the math is simple. One Astral share held today gets you one Astral Chemie share on the record date.

No cash changes hands. Astral itself carries on as a focused plumbing company. A second move runs alongside this.

Al-Aziz Plastics Private Limited will be merged into Astral, which is expected to strengthen its plastics manufacturing base.

Managing Director Sandeep Engineer said both businesses have reached a point where separate management and focused capital can drive faster growth for each.

The chemicals portfolio brought in revenue of Rs 1,266.3 crore in FY26, roughly 21% of Astral’s total turnover. Once separated, it would rank among India’s largest listed pure-play chemicals businesses.

The entire demerger process is expected to take 9 to 12 months to clear regulatory approvals. Markets are nervous for a straightforward reason. Right now, the plumbing business effectively cross-subsidises the chemicals division.

Split them apart, and each segment has to stand on its own. Investors are still working out what each piece is worth independently, and that uncertainty is driving the sell-off today.

At 11:42 am, shares of ASTRAL were trading at Rs 1,353.70 on NSE, down by 8.96% from the previous close.

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