Astral Ltd shares fell nearly 10% on Monday after the company's board approved a plan to demerge its chemicals business into a separate listed entity.
The stock slid as much as 9.91% to ₹1,339 on the Bombay Stock Exchange, reflecting investor caution over the structural change.
Under the approved scheme, Astral shareholders will receive shares in the new company, Astral Chemie, on a 1:1 basis relative to their existing holdings.
The transaction is subject to necessary regulatory and shareholder approvals before it can be implemented.
The demerger aims to unlock value by separating the chemicals segment from the broader conglomerate, allowing each business to be evaluated on its own merits.
However, the immediate market reaction suggests skepticism about the execution risk or the valuation implications of the split.