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Akzo Nobel India Shares Plunge 15% Amid Rs 1,640 Crore Block Deal Buzz

Akzo Nobel India's stock took a steep dive, dropping nearly 15% in a single day. This sharp decline was triggered by buzz around a massive block deal worth about Rs 1,640 crore. The deal appears connected to reports that the promoter was planning to sell a significant stake. This market movement follows the recent major acquisition of the company by JSW Paints.

Key Points: Akzo Nobel India Shares Fall 15% on Rs 1640 Crore Block Deal

  • Shares fell sharply by 15% following a large block deal worth Rs 1,640 crore
  • The deal involved 5.19 million shares, representing 11.4% of total equity
  • Promoter Imperial Chemical Industries was reportedly planning a 9% stake sale
  • The stock drop comes after JSW Paints recently acquired a controlling 60.7% stake
2 min read

Akzo Nobel India shares tumble 15 pc on Rs 1,640 crore block deal buzz

Akzo Nobel India shares tumbled 15% on reports of a massive Rs 1,640 crore block deal. The deal follows promoter stake sale buzz and JSW Paints' recent takeover.

"The shares, which represent about 11.4 per cent of the company’s total equity, were sold at a price of Rs 3,159 per share. - Market Reports"

Mumbai, Dec 17

Akzo Nobel India shares fell sharply on Wednesday, sliding nearly 15 per cent to around Rs 3, 080 apiece, after reports of a large block deal worth about Rs 1, 640 crore hit the market.

According to multiple reports, around 5.19 million shares of Akzo Nobel India Limited were traded in a block deal.

The shares, which represent about 11.4 per cent of the company’s total equity, were sold at a price of Rs 3,159 per share, taking the total deal value to nearly Rs 1,638.5 crore.

The identities of the buyers and sellers involved in the transaction were not immediately known, the report said.

The sharp fall in the stock price came a day after reports suggested that Akzo Nobel’s promoter, Imperial Chemical Industries, was planning to sell up to a 9 per cent stake in the company through a block deal.

That proposed sale was said to be worth about Rs 1,290.6 crore, with a floor price of Rs 3,150 per share, which was roughly a 13 per cent discount to Tuesday’s closing price.

As of the end of the September quarter, Imperial Chemical Industries held a 45.46 per cent stake in Akzo Nobel India.

The recent block deal appears to be largely in line with market expectations following the reports of a potential stake sale.

The stock has also been in focus due to recent changes in the company’s ownership.

Earlier this month, JSW Paints acquired a 60.7 per cent controlling stake in Akzo Nobel India, becoming the new promoter.

With this acquisition, JSW Paints, which is just five years old, has emerged as the third-largest player in India’s decorative paints market when combined with Akzo Nobel India’s business.

On the financial front, Akzo Nobel India reported a sharp jump in consolidated net profit for the July–September quarter.

The company posted a net profit of Rs 1,682 crore, compared with Rs 97 crore in the same period last year.

However, this surge was mainly due to a one-time exceptional gain of Rs 1,874 crore booked during the quarter.

- IANS

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Reader Comments

P
Priya S
The quarterly profit figure is so misleading! Rs 1,682 crore sounds amazing, but it's all because of a one-time gain. The actual operational performance is what matters. Retail investors need to look beyond the headline numbers. 📉
A
Aman W
JSW Paints acquiring control is the real story here. A 5-year-old company becoming the 3rd largest player overnight! This shows the aggressive expansion in the Indian infrastructure and housing sector. Dulux better watch out!
S
Sarah B
As a small investor, this volatility is scary. One day you're up, the next day a block deal wipes out 15%. Who are these big players buying and selling? The lack of transparency is frustrating for the common shareholder.
K
Karthik V
The promoter (ICI) reducing stake from 45% is a strategic shift post the JSW acquisition. They are probably booking profits after a long holding period. The floor price of Rs 3,150 gave a clear signal to the market. The deal happening around that level is no surprise.
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Nisha Z
Respectfully, I think the article could have explained the "exceptional gain" of Rs 1,874 crore in more detail. What was it from? Sale of an asset? A tax write-back? That context is crucial to understand the real financial health. Otherwise, good summary of the events.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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