Akzo Nobel promoters offload 5% for ₹765 crore

Imperial Chemical Industries, one of Akzo Nobel India’s key promoters, sold 22.77 lakh shares of the company at an average price of ₹3,359
| Photo Credit:
Bloomberg

The promoters of Akzo Nobel India have sold a 5 per cent stake worth ₹765 crore, even as the JSW Group is gearing up to acquire a majority stake in the company.

Imperial Chemical Industries, one of Akzo Nobel India’s key promoters, sold 22.77 lakh shares of the company at an average price of ₹3,359, leading to a total transaction value of ₹765 crore.

Leading domestic and foreign institutions such as Goldman Sachs, Morgan Stanley, Citigroup Global Markets Mauritius, Nippon India MF, Edelweiss Life Insurance, Ward Ferry Management, Societe Generale, Mediolanum International Funds (Dublin) and BNP Paribas Financial Markets bought a stake in Akzo Nobel.

Following the stake sale, Imperial Chemicals Industries’ holding fell from 50.46 per cent to 45.46 per cent, leading to a decline in overall promoter shareholding from 74.76 per cent to 69.76 per cent.

Meanwhile, the JSW Group plans to raise ₹7,000 crore in non-convertible debentures to fund the acquisition of AkzoNobel India by JSW Paints, announced in June.

The bonds will carry a tenor of four years and seven months and will be issued in a zero-coupon structure, providing investors with an effective IRR (internal rate of return) of 8.5 per cent.

Of the overall issue, the company will allocate ₹2,100 crore for anchor investors, while the remaining ₹4,900 crore will be open for bidding.

The participation of long-term institutional investors will broaden the company’s ownership base and instill fresh confidence in retail investors, particularly when the open offer is made.

Led by JSW Group scion Parth Jindal, JSW Paints entered into definitive agreements to acquire up to 75 per cent stake in Akzo Nobel India from Akzo Nobel NV and its affiliates for ₹8,986 crore, subject to certain closing adjustments.

In addition, JSW Paints will make the mandatory open offer to acquire 25 per cent worth ₹3,929 crore. The JSW Group had said it will meet the 25 per cent public float in the market once the deal is closed.

The deal will catapult JSW Paints close to the third-largest decorative paint company. The ₹70,000 crore paint industry is going through intense competition with the entry of new players, including Aditya Birla Group company Grasim Industries, JK Cement, and Pidilite Industries. The industry is led by Asian Paints, Berger Paints, and Kansai Nerolac.

Published on September 25, 2025