JSW Paints Ltd has announced an open offer to acquire up to 26% of the equity share capital of Akzo Nobel India Ltd, marking a strategic step to consolidate its holdings in the Indian paint industry. The offer follows JSW Paints’ earlier acquisition of a 74.76% controlling stake in Akzo Nobel India, reinforcing its long-term growth strategy in the sector.
The open offer, managed by Morgan Stanley India Company Private Ltd, proposes the purchase of up to 1,18,40,482 fully paid-up equity shares of face value ₹10 each from public shareholders at a price of ₹3,231.77 per share. If fully subscribed, the total consideration for the offer would amount to approximately ₹2,997.11 crore.
The open offer was issued in accordance with a public announcement dated June 27, 2025, and a detailed public statement released on July 4, 2025. The size of the offer may be proportionally adjusted to ensure that the combined shareholding of JSW Paints and persons acting in concert does not exceed 75% of Akzo Nobel India’s voting share capital. In case of full subscription, the maximum acquisition under the open offer could reduce to 92,73,902 shares, representing roughly 20.36% of the company’s voting capital.
Background of the Acquisition
Earlier this year, JSW Paints had acquired a 74.76% stake in Akzo Nobel India in a deal valued at ₹12,915 crore. The acquisition was aimed at strengthening JSW Paints’ market position and expanding its footprint in key paint segments.
The current open offer allows the company to purchase additional shares from public shareholders, consolidating its ownership while complying with regulatory thresholds. This dual approach ensures that JSW Paints maintains a robust shareholding base and strengthens its long-term strategic objectives.
Strategic Significance
The open offer is a crucial step in JSW Paints’ expansion strategy, enabling the company to:
- Consolidate its holdings in Akzo Nobel India.
- Streamline operations and optimize production, distribution, and marketing.
- Leverage synergies across both companies to enhance operational efficiency and market reach.
The combination of the controlling stake acquisition and the open offer positions JSW Paints as a major player in the domestic paint industry, providing opportunities to expand its portfolio and increase market share.
By securing additional shares through this open offer, JSW Paints is set to strengthen its competitive edge and enhance its capacity to serve India’s growing paint market, particularly in premium and decorative segments.
Summary:
JSW Paints has announced a ₹2,997 crore open offer to acquire up to 26% of Akzo Nobel India following its prior acquisition of a 74.76% controlling stake. Managed by Morgan Stanley India, the offer aims to consolidate JSW Paints’ ownership, streamline operations, and strengthen its position in India’s paint market. The combined acquisitions reinforce the company’s long-term strategy and expand its footprint across production, distribution, and marketing channels.
Disclaimer:
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