Akzo Nobel India Block Deal: Foreign Promoter Set To Sell Equity Worth Rs 1,300 Crore
Imperial Chemical Industries Ltd. has offered to sell 41 lakh shares or around 9% stake for Rs 3,150 per share, a 13% discount to the last closing price.
Akzo Nobel India Ltd.'s foreign promoter will offload equity via secondary market deals on Wednesday.
Imperial Chemical Industries Ltd. has offered to sell 41 lakh shares or around 9% stake for Rs 3,150 per share, a 13% discount to the last closing price, according to the termsheet accessed by NDTV Profit. The transaction aggregates to Rs 1,290 crore at the offer floor price.
Citigroup Global Markets India Pvt. is the sole merchant banker to this deal.
The total promoter holding in Akzo Nobel India is 69.76% as of September quarter. London-based Imperial Chemical Industries, an affiliate of Dutch giant AkzoNobel, owns 45.46%.
In September, the Competition Commission of India cleared Sajjan Jindal-led JSW Paints Ltd.'s proposal to acquire a majority stake in Akzo Nobel's India unit in a Rs 12,915-crore deal.
Imperial Chemical Industries sold 5% stake that month for Rs 765 crore. Goldman Sachs, Morgan Stanley, Ward Ferry Management and other entities were among the buyers.
Akzo Nobel India is optimistic about a strong festive season led by post-monsoon recovery that will drive demand, according to Chairman and Managing Director Rajiv Rajgopal. He expects the momentum to spill over into the final quarter of the current financial year.
"With monsoons now coming close to an end in mid-September, I do think that October, November and December will be big. Of course, it's a truncated Diwali. But, I do think that the season post Diwali will continue to be very strong," he told NDTV Profit.
Shares of Akzo Nobel India settled 0.4% lower at Rs 3623.95 apiece on the BSE, ahead of the news, compared to a 0.6% decline in the benchmark Sensex. The stock is up 2% on a year-todate basis.
