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Astral Ltd.'s Board has decided to withdraw the proposed Composite Scheme of Arrangement

ICICIdirect Research 30 Jul 2026 DISCLAIMER

News: Astral Ltd.'s Board has decided to withdraw the proposed Composite Scheme of Arrangement, including the planned demerger of its Chemical Business, following an independent strategic review. The independent consultant recommended not proceeding with the scheme in its current form, citing the present scale of the Chemicals business. The Board concluded that the demerger may be reconsidered once the Chemicals business achieves greater scale and financial strength to support its organic and inorganic growth.

View: The decision removes near-term restructuring uncertainty and reflects a prudent approach towards value creation. By retaining the Chemicals business within the parent company until it reaches sufficient scale, Astral aims to strengthen the business before revisiting a potential demerger, thereby preserving long-term shareholder value.

Impact: Positive

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