Goldman Sachs, Morgan Stanley Buy 5% Stake in Akzo Nobel India for ₹765 Crore Amid JSW Paints Acquisition Push

Gurgaon, 25 September 2025: In a significant secondary market transaction, leading global financial institutions, including Goldman Sachs and Morgan Stanley, acquired a combined 5% stake in Akzo Nobel India Ltd for nearly ₹765 crore on Wednesday.

The deal comes at a crucial juncture for the paints sector, coinciding with JSW Paints’ ₹ 12,915 crore acquisition of a majority stake in the company.

Akzo Nobel India Ltd (NSE: AKZOINDIA), headquartered in Gurugram, operates in the paints and coatings industry and is a subsidiary of Amsterdam-based Akzo Nobel N.V. The company sells decorative paints, industrial coatings, and speciality chemicals, with popular brands such as Dulux Paints. It remains a long-standing player in India’s paint market, balancing global expertise with domestic presence.

Top Global Funds Acquire Over 22.77 Lakh Shares Worth ₹764.80 Crore

According to National Stock Exchange (NSE) data, several prominent investors participated in the block deals, collectively acquiring 22.77 lakh shares at an average price of ₹3,358.80 per share, translating into a total value of ₹764.80 crore.

The buyers included:

• Goldman Sachs
• Morgan Stanley
• Citigroup Global Markets Mauritius
• Nippon India Mutual Fund
• Edelweiss Life Insurance Company
• Ward Ferry Management
• Societe Generale
• Mediolanum International Funds (Dublin)
• BNP Paribas Financial Markets

The entry of such high-profile institutional investors signals growing confidence in Akzo Nobel India’s prospects amid major corporate restructuring in the paints sector.

Promoter Imperial Chemical Reduces Stake by 5% After Block Sale

The shares were offloaded by Imperial Chemical Industries (ICI), one of Akzo Nobel India’s key promoters. Following the sale, ICI’s holding fell from 50.46% to 45.46%, leading to a decline in overall promoter shareholding from 74.76% to 69.76%.

This dilution paves the way for strategic realignment, particularly given the ongoing acquisition by JSW Paints. The reduction of promoter stake is also expected to broaden the company’s ownership base, increasing institutional participation.

Share Price Movement: Akzo Nobel India Opens Higher but Slips in Early Trade

On the NSE, Akzo Nobel India share price opened at ₹3,410 on Thursday, slightly above the previous close. The stock touched an intraday high of ₹3,410 and a low of ₹3,373.30 before trading at ₹3,379.00, down ₹11.10 (0.33%), at 10:07 am IST. The market capitalisation stood at ₹15,390 crore, with a P/E ratio of 37.91 and a dividend yield of 2.96%.

Despite the marginal dip, the presence of marquee buyers suggests resilience, even as the scrip remains significantly below its 52-week high of ₹4,674, but above its 52-week low of ₹3,022.

JSW Paints’ ₹12,915 Crore Acquisition to Transform Indian Paints Sector

The transaction aligns with the Competition Commission of India’s (CCI) clearance for Sajjan Jindal-led JSW Paints’ acquisition of Akzo Nobel India.

• In June 2025, JSW Paints announced plans to acquire a 74.76% stake in Akzo Nobel India for ₹8,986 crore.
• An additional open offer of ₹3,929.06 crore was made to acquire up to 25% more from the market.
• Once concluded, the deal will make JSW Paints the fourth-largest player in India’s paints industry.

The infusion of global capital through the stake sale, coupled with JSW’s aggressive expansion strategy, is expected to reshape competitive dynamics in the sector, intensifying the battle with incumbents Asian Paints, Berger Paints, and Kansai Nerolac.

The entry of global financial giants and the simultaneous reduction in promoter shareholding highlight a pivotal transition for Akzo Nobel India. With JSW Paints’ acquisition nearing completion, the company is positioned at the centre of an evolving paints sector in India, where consolidation, foreign institutional participation, and competition with established market leaders are likely to drive the industry’s next phase of growth.

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