Akzo Nobel Shares Plunge 15% As Promoter Pares Stake In Block Deal
About 5.19 crore shares, representing 11.4% of the company’s equity, changed hands in a block deal on Wednesday.
Shares of Akzo Nobel India Ltd. fell as much as 15% on Wednesday after a large block deal in the stock, in line with market expectations.
About 5.19 crore shares, representing 11.4% of the company’s equity, changed hands in a block deal worth Rs 1,638.5 crore at a price of Rs 3,159 per share. The identities of the buyers and sellers were not immediately disclosed.
Akzo Nobel’s promoter entity, Imperial Chemical Industries, had been expected to sell up to a 9% stake in the company through a block deal. Sources said the proposed offer size was Rs 1,290.6 crore, with a floor price of Rs 3,150 per share, implying a 13% discount to Tuesday’s closing price.
As of the end of the September quarter, Imperial Chemical Industries held a 45.46% stake in Akzo Nobel India.
Separately, the company reported a sharp jump in consolidated net profit for the second quarter to Rs 1,682 crore, compared with Rs 97 crore a year earlier, largely driven by a one-time exceptional gain of Rs 1,874 crore.
Revenue during the quarter declined 15% year-on-year to Rs 835 crore and was down 16.1% sequentially. Other income fell to Rs 7.7 crore from Rs 9.1 crore in the year-ago period.
Akzo Nobel Share Price Today
The scrip fell as much as 15% to Rs 3,080.20 apiece, and has pared losses to trade 12.75% lower at Rs 3,160 apiece, as of 10:13 a.m. This compares to a 0.07% decline in the NSE Nifty 50 Index.
It has fallen 11.90% on a year-to-date basis. The relative strength index was at 65.40.
Just a single analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 16.6%.
