Astral Ltd’s shares drop sharply following the company’s restructuring plan that separates its chemicals business from its plumbing business. Multiple reports say the stock falls around 6–7% after the board approves a Composite Scheme of Arrangement. Under the scheme, Astral demerges its chemicals segment into a newly incorporated entity named Astral Chemie, while Al-Aziz Plastics is merged into Astral. The filings referenced by outlets indicate that the arrangement also involves Astral Limited as part of the scheme.
The demerger plan triggers a selloff and market focus on how the standalone value and growth prospects of the demerged chemicals business will be determined. Analysts cited in one report link the uncertainty to differences in margins and revenue growth between the plumbing and chemicals segments. Some brokerages reduce their target prices in response, though several retain positive ratings.
Astral retains its plumbing business in the existing listed entity and plans to present separate financial statements—Profit and Loss accounts and balance sheets—for each entity, along with disclosures tied to the June quarter of FY27. Management also expects the chemicals business revenue to rise substantially over the next four to five years, although analysts flag possible cost increases and operational disruption during the implementation period.
