Did Asian Paints Sell Its Entire 4.42% Stake for Rs 734 Crore in Akzo Nobel India?
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Synopsis
Asian Paints Limited has made headlines by selling its entire 4.42% stake in Akzo Nobel India for Rs 734 crore. This bold decision comes amid a bustling paint market, showcasing the shifting dynamics as major players like JSW Paints make significant moves. What does this mean for the future of the industry?
Key Takeaways
- Asian Paints sold a 4.42% stake in Akzo Nobel India.
- The transaction value was approximately Rs 734 crore.
- The sale occurred at Rs 3,651 per share.
- The paint industry is witnessing heightened activity.
- Asian Paints shares ended positively, while Akzo Nobel India shares fell.
Mumbai, July 9 (NationPress) - On Wednesday, Asian Paints Limited announced that it has divested its complete 4.42% paid-up share capital, which equates to 20,10,626 equity shares, in Akzo Nobel India Limited.
In a filing to the stock exchange, the company stated, "Today, we have sold our entire holding of 20,10,626 equity shares in Akzo Nobel India Limited, amounting to 4.42% of its paid-up share capital."
This transaction was executed at Rs 3,651 per share through a bulk deal mechanism, culminating in a total deal value of approximately Rs 734 crore.
The sale coincides with a surge in activity within the paint sector, particularly following JSW Paints' acquisition of the Dulux manufacturer for Rs 8,986 crore.
Additionally, shares of Asian Paints closed positively at Rs 2,497.30, reflecting an increase of 0.51%.
The stock even peaked at an intra-day high of Rs 2,535.0 during trading hours after Jefferies upgraded its rating from 'Underperform' to 'Buy', setting a target price of Rs 2,830 per share.
Conversely, shares of Akzo Nobel India declined, finishing the day at Rs 3,627.0, down 1.56%.
Prominent players in the Rs 90,000-crore Indian paint market, including Asian Paints, Birla Opus, Berger Paints, Kansai Nerolac, Akzo Nobel India, and Indigo Paints, continue to dominate the industry. Notably, Birla Opus launched its operations in February 2024, significantly impacting this competitive landscape.
In the quarter ending March 2025, the paint manufacturer reported a 45% year-over-year decline in consolidated net profit, totaling Rs 692.13 crore. The company also revealed a one-time expense of Rs 183 crore.
Point of View
This significant divestment by Asian Paints highlights the evolving landscape of the paint industry in India. The ongoing competition and market fluctuations reflect broader economic trends, making it crucial for stakeholders to stay informed. NationPress remains committed to delivering reliable insights.
NationPress
27/07/2025
Frequently Asked Questions
What percentage of shares did Asian Paints sell in Akzo Nobel India?
Asian Paints sold its entire 4.42% stake, equivalent to 20,10,626 equity shares.
What was the total value of the transaction?
The total deal value of the transaction was approximately Rs 734 crore.
How much did Asian Paints earn per share in this sale?
Asian Paints executed the sale at Rs 3,651 per share.
How did the stock market react to this news?
Asian Paints shares ended at Rs 2,497.30, up 0.51%, while Akzo Nobel India shares closed lower at Rs 3,627.0, down 1.56%.
What other major companies are in the Indian paint market?
The Indian paint market is primarily dominated by companies like Asian Paints, Birla Opus, Berger Paints, Kansai Nerolac, Akzo Nobel India, and Indigo Paints.
