Asian Granito divests stake in Astron Paper for Rs 46.94 crore

Proceeds from the sale of shares will be utilised to meet long-term working capital and business development

Hyderabad: Ahmedabad-based Asian Granito India Limited (AGIL), a tiles manufacturer with significant market presence in Telangana, has divested its entire 18.87 per cent stake in its associated company – Astron Paper and Board Mills (Astron Paper) for Rs 46.94 crore.

The company sold 87.75 lakh equity shares of Astron Paper through a block deal at Rs 53.5 per share. The proceeds from the sale of Astron Paper shares will be utilised to meet long-term working capital and business development of Asian Granito India.

The capital gains from the sale of shares of Astron Paper will be tax free at the hands of Asian Granito India. 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.

Commenting on the development, Kamlesh Patel, CMD, Asian Granito India 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 growth.”