Billionaire Sajjan Jindal has firmed up the bulk of the funding required for his acquisition of a controlling stake in AkzoNobel India, with domestic mutual funds emerging as the primary financiers, people familiar with the matter told Moneycontrol.
According to sources, Sajjan Jindal, promoter of the $24-billion JSW Group, has raised around Rs 6,000 crore through a loan-against-shares (LAS) structure by pledging a portion of JSW Steel promoter shares to leading mutual funds. The LAS proceeds are expected to cover a major part of the acquisition cost.
To complete the financing, the Jindals are also in talks to issue Compulsory Convertible Preference Shares (CCPs) to lenders, which would plug the last-mile capital requirement.
The funding mix marks a shift from the group’s earlier plan. Jindal had initially held discussions with a set of global banks for an offshore-led structure. However, the group is now understood to have chosen to raise the entire package in rupees from domestic mutual funds, a move that reduces currency risk and takes advantage of strong liquidity flows in the Indian debt market.
Details on the final pledged share quantum, participating fund houses and the conversion terms of the CCPs could not be independently verified.
JSW Group declined to comment.
Why AkzoNobel matters for JSW
The acquisition is central to JSW Group’s renewed push into the paints business, an area the conglomerate has long viewed as a natural adjacency to its steel and cement portfolio. The group entered the paints market in 2019 through JSW Paints, positioning it as a challenger brand with innovations such as “Any Colour One Price,” but the business has remained modest in scale compared to incumbents like Asian Paints, Berger Paints and Kansai Nerolac.
Securing control of AkzoNobel India gives Jindal a ready, scaled platform with deep dealer networks, a strong brand recall in decorative paints, and a decades-long presence in industrial coatings, a segment that fits neatly with JSW’s ecosystem spanning steel, infrastructure and manufacturing.
The deal will make JSW Paints a top four player in the Indian paints industry.
Deal contours
In June, JSW Paints announced that it will acquire a 74.76 percent stake in AkzoNobel India Limited for a purchase consideration of Rs 8,986 crore followed by an open offer to acquire the remaining 25.24 percent stake held by public shareholders for up to Rs 3,929 crore.
The deal received the Competition Commission of India approval in September.
AkzoNobel's revenue from operations stood at Rs 4,091.21 crore in FY25.
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