Asian Paints Exits Akzo Nobel India, Sells 4.4% Stake for ₹734 Crore

New Delhi, July 10 – Asian Paints has sold its entire 4.42% stake in Akzo Nobel India Ltd, the Indian arm of Dutch paints major Akzo Nobel, for ₹734.08 crore in an open market transaction. The company is likely to refocus its capital on core operations and revive growth in the urban market. The revenue will help Asian Paints to strengthen its financial flexibility, potentially boosting dividends or investing in its core decorative paint business amid renewed competition.

Exit via Bulk Deal Route

In a regulatory filing, Asian Paints confirmed the sale of 20,10,626 equity shares, representing 4.42% of Akzo Nobel India’s paid-up share capital. The shares were sold at an average price of ₹3,651 per share through the bulk deal mechanism on the National Stock Exchange (NSE).

This strategic move follows closely on the heels of JSW Paints, led by Sajjan Jindal, announcing the acquisition of Akzo Nobel’s Indian unit in a ₹12,915 crore deal. The acquisition includes a 74.76% stake for ₹8,986 crore and an open offer for an additional 25% stake for up to ₹3,929.06 crore.

Mutual Funds Step In as Buyers

Among the prominent buyers of the stake were ICICI Prudential Mutual Fund and Eastspring Investments India Consumer Equity Open Ltd, which together acquired 9.5 lakh shares, representing a 2.1% stake, at ₹3,651 apiece. The total transaction value for this acquisition stood at ₹346.92 crore.

Eastspring Investments is a subsidiary of British multinational Prudential plc, indicating growing foreign institutional interest in India’s paints market amid ongoing consolidation.

Market Reaction as of July 10, 2025, 15:00 IST

Shares of Akzo Nobel India Ltd were trading at ₹3,600.00, down ₹48.80 or 1.34% compared to the previous close of ₹3,648.80. The stock touched an intraday low of ₹3,567.10 and a high of ₹3,648.80. The decline in share price reflects cautious investor sentiment amid a major ownership reshuffle, with Asian Paints exiting and JSW Paints entering the fray.

At 03:00 PM, the stock traded at ₹2,452.30. 1.86% down from the previous close.

Asian Paints’ exit marks a significant shift in the competitive landscape, paving the way for JSW Paints to rise as the fourth-largest player in the Indian paints industry.

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