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Astral Ltd.'s board has approved a composite scheme of arrangement involving the demerger of its chemicals business

ICICIdirect Research 29 Jun 2026 DISCLAIMER

News: Astral Ltd.'s board has approved a composite scheme of arrangement involving the demerger of its chemicals business into wholly owned subsidiary Astral Chemie Ltd. and the merger of wholly owned subsidiary Al-Aziz Plastics Pvt. Ltd. into Astral. Under the scheme, Astral shareholders will receive one equity share of Astral Chemie for every one Astral share held, while Al-Aziz Plastics will be merged without any fresh share issuance. Astral Chemie will subsequently seek listing on the NSE and BSE, subject to regulatory approvals

View: The restructuring is aimed at creating two focused businesses - Plumbing (Astral) and Chemicals (Astral Chemie). It is expected to improve management focus, capital allocation, and operational efficiency while unlocking shareholder value. The chemicals business has ambitious growth targets (aiming at revenue of ₹ 4400-5000 crore in next 4-5 years from ₹1861 crore in FY26), while the plumbing business will benefit from the upcoming CPVC resin plant and expansion initiatives

Impact: Positive

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