Asian Granito India Divest Entire Stake in Astron Paper

Asian Granito India Limited (AGIL), one of India's leading tiles companies has divested its entire18.87% stake in its associated company - Astron Paper and Board Mills Ltd (Astron Paper) for Rs. 46.94 crore. Company sold 87.75 lakh equity shares of Astron Paper throug

BY Realty Plus
Published - Thursday, 12 Aug, 2021

Asian Granito India Divest Entire Stake in Astron Paper

Asian Granito India Limited (AGIL), one of India's leading tiles companies has divested its entire18.87% stake in its associated company - Astron Paper and Board Mills Ltd (Astron Paper) for Rs. 46.94 crore. Company sold 87.75 lakh equity shares of Astron Paper through block deal at Rs. 53.5 per share on 10 August 2021. Proceeds of Rs. 46.94 crore from the sale of Astron Paper shares will be utilised to meet long term working capital and business development of Asian Granito India Ltd. The capital gains from the sale of shares of Astron Paper will be tax free at the hands of Asian Granito India Ltd. With a view to focus on the core business of ceramic tiles and building materials, Asian Granito in its board meeting held on 31 May 2021 had approved disinvestment from Astron Paper. Astron Paper is listed on BSE and NSE. Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd said, "It is important for us to capitalise on our core strengths and capabilities and the divestment from Astron Paper is in line with a company's vision to focus on our core business of tiles and building materials which is witnessing an excellent growth. Company has taken many initiatives in the last few years for improving operational efficiency, financial prudence, cost optimisation which has resulted in the strong performance and likely to drive the growth going forward. Company has recently reduced its overall consolidated debt by Rs. 35 crores, resulting in debt equity ratio of less than 0.5 times and proceeds of the divestment will further strengthen the liquidity position of Asian Granito."