M&A

M&A

Astral to acquire 51% stake in Gem Paints for Rs.194-Cr

Economic Times  

Ahmedabad-based PVC pipes and plastic products maker Astral will acquire a majority 51% stake in Bangalore-based Gem Paints for INR 194 crore. (The operating paint business of Gem Paints is proposed to be demerged to a wholly-owned subsidiary - Esha Paints.) Astral shall initially invest INR 194 crores in Gem Paints by subscribing to Optionally Convertible Debentures equivalent to the value of 51% equity stake of Operating Paint business of Gem Paints. The balance 49% equity stake will be acquired by Astral over a period of five years in tranches Gem Paints is in the business of manufacturing and supply of various types of paints, varnishes, coatings, products related to home decor and industrial paints. Its provisional turnover in FY 2021-22 stood at INR 215 crore.