The shares of one of the leading paint manufacturers, engaged in producing, trading, and selling coatings, jumped 8% after its promoters announced the sale of their India business to JSW Paints, drawing attention to the sector and the strategic move.
With a market capitalization of Rs 15,424 Crores, the share price of Akzo Nobel India Ltd was trading over 10% hit an intraday high of Rs 3533 per share from its previous closing price of Rs 3189.30 per share.
In a major strategic move, the promoters of Akzo Nobel India Ltd have signed a share purchase agreement with JSW Paints to sell their entire 74.76% stake for Rs 9,400 crore at a price of Rs 2,762.05 per share, a 16% discount to the previous day’s closing price.
This includes an upfront payment of Rs 8,986 crore and a possible additional payout of Rs 447 crore. The promoters selling the stake include Imperial Chemicals and Akzo Nobel Coatings International.
As part of the takeover process, JSW Paints, along with persons acting in concert (JTPM Metal Traders Pvt Ltd and JSW EduInfra Pvt Ltd), has also announced an open offer to acquire up to 1.15 crore shares (representing 25.24% of the company’s voting share capital) from public shareholders. The offer price is Rs 3,417.77 per share, with a total offer size of up to Rs 3,929 crore in cash.
The transaction is subject to regulatory approvals, including clearance from the Competition Commission of India and completion of the open offer. Until the deal is completed, Akzo Nobel India must seek prior consent from JSW Paints for any major business or financial changes. Currently, JSW Paints does not hold any stake in the company.
Akzo Nobel India Ltd, part of the world’s largest coatings company AkzoNobel, has been a prominent player in India for over 70 years. As one of the leading paint and coatings companies, it is engaged in the manufacturing, trading, and sale of a wide range of paints and related products. The company also provides research and development services to its holding company and other group entities.
With a strong global presence and pioneering heritage, Akzo Nobel India delivers innovative products and sustainable technologies that offer essential protection and vibrant colour to both industries and consumers.
The company reported a revenue of Rs 4,091 crore in FY25, up by 3.3 percent from its FY24 revenue of Rs 3,962 crore. Coming to its profitability, the company reported a net profit rise of 0.7 percent to Rs 430 crore in FY25 from Rs 427 crore in FY24. The stock delivered an ROE and ROCE of 32.3 percent and 41.7 percent, respectively.
Written By Rohan Pandey
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Paint stock jumps over 10% after JSW Paints plans to acquire 75% of stake worth ₹9,400 Cr appeared first on Trade Brains.