The promoters of Akzo Nobel India have sold a 5 percent stake, valued at ₹765 crore, as the JSW Group prepares to acquire a majority stake in the company. Imperial Chemical Industries, a key promoter of Akzo Nobel India, disposed of 22.77 lakh shares at an average price of ₹3,359, resulting in a total transaction value of ₹765 crore.
Prominent domestic and foreign institutions, including Goldman Sachs, Morgan Stanley, Citigroup Global Markets Mauritius, Nippon India Mutual Fund, Edelweiss Life Insurance, Ward Ferry Management, Societe Generale, Mediolanum International Funds (Dublin), and BNP Paribas Financial Markets, have also acquired stakes in Akzo Nobel.
Following this sale, Imperial Chemical Industries’ holding decreased from 50.46 percent to 45.46 percent, which had a ripple effect on the overall promoter shareholding, reducing it from 74.76 percent to 69.76 percent.
In related developments, the JSW Group plans to raise ₹7,000 crore through non-convertible debentures to finance the acquisition of AkzoNobel India by JSW Paints, an announcement made in June. The bonds will have a tenure of four years and seven months and will be issued as zero-coupon bonds, yielding investors an effective internal rate of return (IRR) of 8.5 percent. The initial tranche will allocate ₹2,100 crore for anchor investors, while the remaining ₹4,900 crore will be offered for public bidding.
The involvement of long-term institutional investors is expected to broaden the ownership base of Akzo Nobel and foster renewed confidence among retail investors, particularly when the mandatory open offer is initiated.
JSW Paints, led by scion Parth Jindal, has entered definitive agreements to acquire up to 75 percent of Akzo Nobel India from Akzo Nobel NV and its affiliates for ₹8,986 crore, subject to certain closing adjustments. Additionally, JSW Paints will initiate a mandatory open offer for the purchase of a 25 percent stake, valued at ₹3,929 crore. The JSW Group has indicated plans to satisfy the 25 percent public float requirement in the market once the acquisition is finalized.
This acquisition will position JSW Paints as one of the top players in the competitive ₹70,000 crore paint industry, which has seen increasing competition with the entrance of new players such as the Aditya Birla Group’s Grasim Industries, JK Cement, and Pidilite Industries. The market is currently dominated by Asian Paints, Berger Paints, and Kansai Nerolac.
The article was published on September 25, 2025.
