JSW’s Sajjan Jindal Secures ₹6,000 Crore Mutual Fund Financing for AkzoNobel India Deal

Industrialist Sajjan Jindal has raised ₹6,000 crore through domestic mutual funds using a loan-against-shares route to finance the acquisition of a 74.76% stake in AkzoNobel India. This marks JSW Group’s entry into the competitive paints segment, aiming to scale JSW Paints to national prominence. 

Jindal Taps Mutual Funds as Primary Financiers 

Sajjan Jindal has secured ₹6,000 crore in funding by pledging JSW Steel promoter shares under a loan-against-shares structure with top Indian mutual funds. This bulk financing will support the acquisition of AkzoNobel India, aligning with JSW Group’s goal of expanding its presence in the building materials ecosystem, particularly paints. The group has decided to raise funds entirely in rupees to avoid currency fluctuation risks and benefit from favourable domestic debt market liquidity. 

Equity Instruments to Cover Remaining Capital 

Beyond the ₹6,000 crore already secured, JSW is in talks to issue Compulsory Convertible Preference Shares (CCPs) to bridge the remainder of the acquisition financing needs. This hybrid funding structure departs from their earlier plan of seeking global banks for an offshore-led arrangement, reinforcing their reliance on domestic markets. 

Strategic Relevance of AkzoNobel to JSW 

With this acquisition, JSW Group aims to strengthen JSW Paints by integrating AkzoNobel India’s extensive dealer network, reputable decorative paint brand and robust presence in industrial coatings. Since entering the paint market in 2019, JSW Paints introduced innovations like “Any Colour One Price,” but has struggled to match incumbents in scale. AkzoNobel’s strong foothold now positions them among the top 4 players in India’s paint sector. 

Read More: JSW Infrastructure Share Price in Focus; to Acquire 51% Stake in Oman Port SPV! 

Deal Details and Market Impact 

The deal involves acquiring a 74.76% stake in AkzoNobel India for ₹8,986 crore, followed by an open offer for the remaining 25.24%, potentially adding ₹3,929 crore to the total deal value. Approved by the Competition Commission of India in September, this acquisition will open up access to AkzoNobel’s ₹4,091.21 crore revenue base as of FY25, complementing JSW’s existing steel, cement and infrastructure operations. 

Akzo Nobel India Share Price Performance 

As of November 19, 2025, at 11:12 AM, Akzo Nobel India share price was ₹3,343.70 down by 1.12%. 

Conclusion 

Jindal’s funding strategy underscores a decisive turn towards domestic mutual funds and capital markets to support a multi-sector expansion. The AkzoNobel deal is expected to boost JSW Paints' industry position, leveraging a mix of strategic brand acquisition and financial planning. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.