ASTRAL Ltd to acquire controlling stake in GEM Paints Pvt Ltd

As part of ASTRAL Ltd's strategy to expand its product portfolio under building material segment and strengthen the brand ASTRAL and its Dealer's & Distributors Network, the Board of Directors of ASTRAL has today entered into definitive agreements for acquiring controlling 51% equity stake in operating business of GEM PAINTS PRIVATE LIMITED.

GEM PAINTS was founded in 1980, and has been manufacturing high performance Industrial and Decorative coatings in South India. The company has been consistently performing well, with more than 3000+ dealers and 10 Depots spread across all the states of South India.

GEM PAINTS enjoy its competitive edge which is derived from its resin manufacturing capabilities and in-house R&D division. The product quality has always been at the spearhead of the company's policy since its inception.

GEM PAINTS has wide range of diverse portfolio of 28+ brands and 100+SKUs spanning across various price points.

GEM PAINTS has spread out by recently setting up a state of art plant at Nelamangala (Karnataka) admeasuring 160,000 Sq. Ft. and has an Annual Capacity of 36,000 K.L. (Post Expansion of Phase II - 60,000 K.L.)

GEM PAINTS adhere to its highest quality standards with compliance to all required regulations around lead content and VOC.

On this acquisition Mr. Sandeep Engineer - MD of ASTRAL LTD, Quote that "The acquisition of GEM PAINTS will be a good addition of product portfolio in Astral Product Basket and I am confident that this will take Astral's Brand value to new heights and build more confidence among Builders, Architects, Consultants, Dealers and Distributors of the company due to product synergy within the network."

On this acquisition Mr. Anand Gandotra - Founder & MD of GEM PAINTS Quote that "Joining hands with the brand ASTRAL is a new chapter & a step in the right direction for the growth of GEM PAINTS in all aspects. I have complete faith that this association will take the future of GEM PAINTS to be a PAN INDIA brand and envisage a multifold growth."

Shares of Astral Limited was last trading in BSE at Rs. 2153.05 as compared to the previous close of Rs. 2164.95. The total number of shares traded during the day was 12907 in over 2739 trades.

The stock hit an intraday high of Rs. 2177.65 and intraday low of 2119.00. The net turnover during the day was Rs. 27809070.00.

Source : Equity Bulls

Keywords

Astral INE006I01046 Acquisition Agreement GEMPaints