Akzo Nobel India shares rally 6% as JSW Paints to acquire stake worth Rs 8,986 crore

Over the past year, shares of Akzo Nobel India have gained around 19 percent.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Shares of paints player Akzo Nobel India Ltd rallied over six percent in early trade on Friday, June 27, as JSW Paints agreed to acquire up to 74.76 percent stake in the firm.

JSW Paints has signed agreements to acquire up to 74.76 percent stake in Akzo Nobel India from its parent company and affiliates for up to Rs 8,986 crore, subject to final adjustments, the company said in a filing on June 27. The deal will need approval from the Competition Commission of India and includes a mandatory open offer to public shareholders.

JSW Paints will acquire Akzo Nobel India at a price of Rs 2,762.05 per share, which reflects a 16 percent discount to the current market price. Additionally, contingent consideration of up to Rs 447 crore may be payable upon completion of the transaction.

At 9.45 a.m., shares of Akzo Nobel India were quoting Rs 3,374.6, up 5.8 percent on the NSE compared to the previous session's closing price.

Moneycontrol had first reported on June 26 that JSW Paints was close to finalising the acquisition of Akzo Nobel’s India unit.

Follow our market blog to catch all the live updates

Earlier this year, Akzo Nobel India received a binding offer from its parent company, Akzo Nobel N.V., to acquire its powder coatings business and international R&D centre. The company plans to transfer both units on a slump sale basis as going concerns. The powder coatings business is valued at Rs 2,073 crore, while the R&D centre is proposed to be sold for Rs 70 crore.

Asit C. Mehta Investment Intermediates Research said, "The silver lining in the near term will be the expected dividend payout by the company, from the net proceeds of these transactions, which amounts to Rs 990 crore. Net of tax of 14 percent, this could lead to a dividend per share upto ~Rs 187, if the entire amount is distributed. However, timing of the same is unknown."

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.