Akzo Nobel India Share Price Plunges 15% After 10.7% Equity Block Deal

Akzo Nobel India share price (NSE: AKZOINDIA) dropped sharply on Wednesday after a large block deal in early trade. About 4.88 million shares, equal to 10.7% of the company’s equity, changed hands, triggering heavy selling pressure.

The stock fell as much as 15% during the session to an intraday low of ₹3,080.20, marking its steepest single-day fall since March 2020. Later, it recovered slightly but was still trading around 13.5% lower, even as the benchmark Nifty 50 edged up.

At current levels, the company’s market capitalisation stands at around ₹14,223 crore.

Details Of The Block Deal

According to reports, Imperial Chemical Industries, the promoter entity, planned to raise up to ₹1,290 crore by selling part of its stake in Akzo Nobel India. The share sale was reportedly done at a floor price of ₹3,150 per share, which was nearly a 13% discount to Tuesday’s closing price.

The stock was the most traded by value on the day and also emerged as the worst performer on the NSE Nifty 500 and S&P BSE 500 indices.

Promoter Stake And JSW Paints Acquisition

As of the September quarter, Imperial Chemical Industries held a 45.46% stake in Akzo Nobel India. Earlier this month, JSW Paints completed the acquisition of a 60.76% majority stake in the company from Akzo Nobel N.V. and its affiliates.

In June, JSW Paints had announced plans to acquire up to a 74.76% stake in Akzo Nobel India for a maximum consideration of ₹8,986 crore.

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Conclusion

Akzo Nobel India shares saw their sharpest fall in over 5 years due to a large block deal and discounted stake sale by the promoter. 

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