World's Largest Coating Company's Share Price Surges 11% as JSW Paints to Acquire 74.76% Stake Worth Rs 9,403 Crore
The stock is down 2.81 per cent on a year-to-date basis. Over the past 12 months, the stock has returned 19.27 per cent.
JSW Paints is set to acquire a controlling stake in Akzo Nobel India Limited, leading to a sharp rally in the latter’s share price. On Friday, Akzo Nobel India’s stock jumped over 11 per cent following the announcement, drawing investor attention amid a generally positive trading session. The stock was closed at Rs 3,419 per share, up 7.20 per cent intraday.
JSW Paints Limited has entered into a Share Purchase Agreement (SPA) with Akzo Nobel India’s two promoter entities — Imperial Chemical Industries Limited and Akzo Nobel Coatings International B.V. — to acquire up to 74.76 per cent of the equity share capital. This amounts to 3,40,44,335 equity shares at Rs 2,762.05 per share, translating into a transaction valued at approximately Rs 9,403 crore, subject to regulatory clearances.
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The acquisition will result in a change of control, with JSW Paints becoming the new promoter of Akzo Nobel India. As per SEBI regulations, an open offer has also been announced by JSW Paints, JTPM Metal Traders, and JSW EduInfra for acquiring an additional 25.24 per cent from public shareholders. The offer is for up to 1,14,95,979 equity shares at Rs 3,417.77 per share, totalling Rs 3,929 crore, assuming full acceptance. Morgan Stanley India Company Pvt Ltd is managing the open offer, and the Detailed Public Statement (DPS) will be released by July 4, 2025.
Post-transaction, JSW Paints and its affiliates may hold up to 75 per cent of Akzo Nobel India, and the existing promoters will be reclassified as public shareholders. This deal signifies a full transition of control in the company.
Financially, Akzo Nobel India reported a 5 per cent year-on-year rise in revenue for the March 2025 quarter, reaching Rs 1,022.10 crore, though net profit dipped slightly by 1.19 per cent to Rs 107.50 crore due to lower investment income. For the full FY25, revenue rose 3.27 per cent to Rs 4,091.20 crore, and annual net profit increased marginally to Rs 428.60 crore.
From a stock performance perspective, Akzo Nobel India has delivered 8.20 per cent returns in the last week. However, the stock is down 2.81 per cent on a year-to-date basis. Over the past 12 months, the stock has returned 19.27 per cent.
Akzo Nobel India operates in the Large-Cap segment and is known for its decorative paints, performance coatings, and speciality chemicals under brands like Dulux. Its products cater to the automotive, marine, and packaging industries and reflect a focus on innovation and sustainability.
Disclaimer: The article is for informational purposes only and not investment advice.