Astral Limited has informed the Exchange about intimation under Regulation 30 Acquisition
ASTRAL · price
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Astral Limited's board has approved acquiring an 80% equity stake in Nexelon Chem Private Limited, a chemicals manufacturer incorporated in July 2023 that is yet to start commercial production. Astral will pay Rs. 80,000 at par for the stake and invest up to Rs. 120 crores over time to fund Nexelon's operations. Nexelon will manufacture CPVC resin, which is Astral's main raw material, making this a backward integration move. The deal is expected to close within 2-3 months and will be funded entirely in cash. The transaction is not a related-party deal, and Nexelon currently has no revenue as it is still setting up its manufacturing unit.
This acquisition is strategically positive as it gives Astral direct control over a key raw material (CPVC resin), which should help reduce input costs and improve margins over the medium term. Investors may view this as a long-term value-creating move, though benefits will take time as Nexelon's plant is not yet operational.