In a significant move in the paint industry, JSW Paints has announced an open offer to acquire additional shares in Akzo Nobel India. The open offer is valued at ₹3929 crore and aims to purchase 25.24% of the company's shares. The offer is priced at ₹3417.77 per share.
This open offer follows JSW Paints' major deal in June 2025 to acquire the controlling stake in Akzo Nobel India from Dutch promoter companies. The current offer is aimed at acquiring the remaining shares after that acquisition, thereby increasing its influence over the company's operations and management.
Open Offer to Acquire 25.24% of Shares
According to information released by Akzo Nobel India on Friday, JSW Paints Limited plans to acquire 11,495,979 fully paid-up equity shares through the open offer. This represents approximately 25.24% of the total voting capital.
Through this open offer, JSW Paints seeks to strengthen its position in the company by purchasing shares from the market. Notably, under SEBI regulations, promoters are required to launch an open offer if they acquire more than 25% of the shares in any company.
Compliance with the 75% Shareholding Limit under Regulations
JSW Paints' open offer is structured to ensure that the total shareholding does not exceed 75%. According to the Securities and Exchange Board of India (SEBI) regulations, the public shareholding in any listed company must be at least 25%.
In adherence to this regulation, JSW Paints aims to maintain majority control of the company while remaining within the legally prescribed limits.
Market Impact, Slight Decline in Stock Price
The announcement by JSW Paints also impacted the stock market. On Friday, Akzo Nobel India's share closed at ₹60.42, down 1.63%. However, the company's stock has shown a 5.63% gain over the past year.
Market analysts believe that this move by JSW Paints could offer investors new hope regarding the company's future, although fluctuations in the stock price may continue in the short term.
SEBI Approval Required for the Deal
However, JSW Paints must obtain approval from SEBI before implementing this open offer. The company has issued a Draft Letter of Offer (DLO), providing comprehensive details about the offer, the process, and the timeline.
The extent of JSW Paints' additional share acquisition will depend on SEBI's approval and the response from public shareholders.
JSW Paints' Strategy
JSW Paints aims to be among the top three companies in the Indian paint industry. It is focusing on expansion, acquisitions, and branding to achieve this goal. The acquisition of an established brand like Akzo Nobel is considered part of this strategy.
Akzo Nobel India already has a presence in several segments, including industrial coatings, decorative paints, and specialty chemicals. By integrating this entire portfolio with its network, JSW Paints can rapidly increase its market share.
Market Focus on JSW's Next Move
The market is now watching how JSW Paints proceeds with this acquisition and whether it successfully brings Akzo Nobel India under its operational control. It will also be interesting to see how this impacts the shares and market strategies of other paint companies.
