AkzoNobel India Ltd. shares dropped by over 2% today after reports revealed the company’s plans to sell its consumer paints business in India for a valuation of $1.5 to $1.7 billion. According to sources cited by Mint, the company is expected to retain its industrial coatings segment while selling its business-to-consumer (B2C) paints unit.
The sale has attracted interest from major industry players such as Pidilite Industries, JSW Paints, and Indigo Paints, with each company preparing to place financial bids. Pidilite is expected to bid alone, while JSW Paints may seek a partnership with private equity firms Blackstone or TPG. Indigo Paints is reportedly in talks with Advent International or Warburg Pincus.
The strategic review, which was initiated by AkzoNobel last year, is part of the company’s broader restructuring efforts. The industrial coatings division, which includes long-term contracts with entities like the Indian Navy, is not included in the sale. However, selling this division could complicate matters due to intellectual property protections and ongoing contracts.
As of today, Akzo Nobel India has a market capitalization of ₹148.59 billion, with the share price dropping to ₹3,256.00, down by ₹68.80 from the previous close of ₹3,324.80.
Stock details:
- Current price: ₹3,256.00
- Previous close: ₹3,324.80
- Day Range: ₹3,244.40 – ₹3,334.45
- Market Cap: ₹148.59 billion
- P/E Ratio: 34.52
- Dividend Yield: 3.43%
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