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

29 Apr 2022 , 08:21 PM

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.

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