Akzo Nobel India , a prominent player in the Indian paint industry, witnessed a significant change in its shareholding structure as one of its key promoters, Imperial Chemical Industries Limited (ICIL), sold a substantial stake in the company. The sale comes amid JSW Group's plans to acquire a majority stake in Akzo Nobel India.

Promoter Stake Sale

Imperial Chemical Industries Limited, a promoter of Akzo Nobel India, sold 22.77 lakh shares, representing approximately 5% of the company's paid-up equity share capital. The transaction was executed through a block deal on the National Stock Exchange at an average price of ₹3,359.00 per share, totaling ₹765.00 crore.

Impact on Shareholding

Following the sale, Imperial Chemical Industries' holding in Akzo Nobel India decreased from 50.46% to 45.46%. This reduction has brought down the overall promoter shareholding in the company from 74.76% to 69.76%.

Institutional Buyers

The stake was acquired by several major institutional investors, including:

• Goldman Sachs
• Morgan Stanley
• Citigroup Global Markets Mauritius
• Nippon India Mutual Fund

These institutions, along with others, participated in the block deal, indicating strong interest in Akzo Nobel India's shares.

JSW Group's Acquisition Plans

In a parallel development, JSW Group has announced plans to raise ₹7,000.00 crore through non-convertible debentures (NCDs) to fund its acquisition of Akzo Nobel India through JSW Paints. The proposed bonds will have a tenure of four years and seven months, structured as zero-coupon instruments offering an 8.5% Internal Rate of Return (IRR).

JSW Paints has agreed to acquire up to a 75% stake in Akzo Nobel India for ₹8,986.00 crore. Additionally, the company will make a mandatory open offer for the remaining 25% stake, valued at approximately ₹3,929.00 crore.

Industry Impact

This acquisition, once completed, is set to position JSW Paints as the third-largest decorative paint company in India's ₹70,000.00 crore paint industry. The move signifies a major shift in the competitive landscape of the Indian paint sector.

Regulatory Compliance

Akzo Nobel India has duly informed the stock exchanges about the transaction, complying with the regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has emphasized that Imperial Chemical Industries Limited continues to be one of its promoters despite the reduction in shareholding.

As the paint industry in India undergoes significant changes, market observers will be keenly watching the developments in Akzo Nobel India and the broader implications of JSW Group's entry into the decorative paints segment.

In a significant market move, Imperial Chemical Industries has divested a 5% stake in Akzo Nobel India through a block deal valued at ₹765 crore. The transaction, which saw shares changing hands at ₹3,358.80 per share, has attracted several prominent institutional investors.

Key Highlights of the Deal

Major Buyers

The stake sale saw participation from various mutual funds and investment entities:

1. Nippon India: Acquired a 1.8% equity stake for ₹274.00 crore
2. WF Asian Smaller Companies Fund: Purchased a 1.2% stake for ₹174.00 crore
3. Other notable buyers included:
   • Goldman Sachs Funds
   • Baroda BNP Paribas Mutual Fund
   • Aditya Birla Sun Life Mutual Fund

Akzo Nobel India's Growth Strategy

Akzo Nobel India has outlined ambitious plans for market expansion:

• Focus Area: Mass economy paint segment

Company Overview

Akzo Nobel India operates across multiple segments in the paint and coatings industry:

• Decorative paints
• Automotive coatings
• Industrial coatings
• Other specialty segments

The company reported a revenue of ₹4,091.21 crore for the fiscal year 2025 (FY25).

Market Response

Following the announcement of the stake sale, Akzo Nobel India's shares closed at ₹3,386.60, representing a marginal decline of 0.24% in the day's trading.

This strategic divestment by Imperial Chemical Industries and the subsequent acquisition by prominent institutional investors underscores the strong interest in Akzo Nobel India's growth potential. The company's ambitious expansion plans, particularly in the mass economy paint segment, signal its intent to capture a larger market share in India's competitive paint industry.