Astral Limited’s board approved a composite scheme on June 25, 2026 to demerge its adhesives, sealants, and construction chemicals business — which generated ₹1,266 crore in FY26 revenue, representing 21% of standalone turnover — into a separately listed entity, Astral Chemie Limited. The announcement sent Astral’s stock down nearly 10%. Ten days later, on July 5, the board ordered a comprehensive independent review of the same scheme following feedback from unnamed stakeholders. A Big Four or equivalent adviser has been appointed and must submit findings within 30 days, after which the board will decide whether to proceed, modify, defer, or abandon the plan entirely. Meanwhile, Astral Chemie has separately signed agreements to acquire a 60% stake in specialty chemicals firm DSS for ₹39.11 crore – signalling that the demerged entity is being built out regardless of the scheme’s final outcome.
What this means for the trade: The adhesives and construction chemicals spin-off that would have created a standalone Pidilite-scale rival is now formally on hold — dealers and project teams should avoid building medium-term assumptions around Astral’s adhesives distribution strategy until the review concludes in early August.
