Astral Limited formally withdrew its Composite Scheme of Arrangement on July 29, 2026 — reversing, within 34 days, a restructuring plan that had sent its stock down 8–11% when announced on June 25. The board concluded that the chemicals business, which generated ₹1,266 crore in FY26 turnover — approximately 21% of Astral’s standalone revenue — currently lacks the scale and financial strength required to sustain independent organic and inorganic growth as a listed entity. The withdrawal followed a recommendation from an independent Big Four adviser appointed July 5 to evaluate stakeholder feedback and conduct a 30-day review. The chemicals division — covering adhesives, sealants, construction chemicals, and paints — had been targeted to grow to ₹4,400–5,000 crore over four to five years before the plan was pulled. No timeline for revisiting the demerger has been disclosed.
What this means for the trade: Astral’s adhesives and construction chemicals business stays within the consolidated entity for the foreseeable future — dealers across both plumbing and adhesives categories can expect continued single-entity operations, unified distribution, and no change to existing supply and credit arrangements.
