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.

Imperial Chemical Industries is set to divest up to 5% of its stake in Akzo Nobel India Ltd through a block deal valued at approximately ₹742.70 crore. This move marks a significant development in the ownership structure of the well-known coatings and paints company.

Deal Details

The floor price for the stake sale has been established at ₹3,261.80 per share, representing a 4% discount compared to Akzo Nobel's last closing price. This pricing strategy aims to attract potential investors while ensuring a fair valuation for the shares being offloaded.

Lock-up Period

As part of the transaction terms, Imperial Chemical Industries will be subject to a 30-day lock-up period on its remaining shares after the completion of the deal. This provision is likely aimed at maintaining market stability and preventing immediate further dilution.

Company Overview

Akzo Nobel India operates across various segments of the coatings industry, including:

• Decorative paints
• Automotive coatings
• Industrial coatings
• Marine and yacht coatings
• Powder coatings

This diverse portfolio positions the company as a significant player in the Indian coatings market.

Financial Performance

Akzo Nobel India reported revenue from operations of ₹4,091.21 crore.

Market Response

On September 23, Akzo Nobel India's shares closed at ₹3,399.00, marking a 0.66% increase. This upward movement suggests investor confidence in the company's prospects and the potential impact of the upcoming stake sale.

The proposed stake sale by Imperial Chemical Industries could potentially lead to changes in the ownership dynamics of Akzo Nobel India, and market observers will be keenly watching for any impacts on the company's strategic direction and performance.