Asian Paints, the country’s largest paint maker, on Wednesday, sold its entire 4.42% shareholding in AkzoNobel India for Rs 734 crore. The transaction comes close on the heels of rival JSW Paints announcing that it was acquiring a 74.76% stake in AkzoNobel India. The transaction was executed via a bulk deal at a floor price of Rs 3,651 per share, data from NSE shows. Shares of AkzoNobel India closed trade down 1.6% at Rs 3,627 apiece on Wednesday on the NSE.
Two million shares exchanged hands in the bulk deal. Buyers included EastSpring Investments India and ICICI Prudential Mutual Fund, who bought 0.25 million and 0.7 million shares each, data from the stock exchange shows.
Asian Paints shares closed trade at Rs 2,497.30 apiece on Wednesday on the NSE, up 0.51% from the previous day’s close.
The acquisition of a controlling stake in AkzoNobel India for Rs 8,986 crore will push JSW Paints to the fourth spot in the pecking order of paints companies. JSW Paints has said that it is keen to get into the third position in three years by expanding its manufacturing and distribution.
India’s Rs 80,000-crore paint market is currently dominated by major players such as Asian Paints, Berger Paints, Kansai Nerolac and AkzoNobel India, with new entrants such as Birla Opus growing its share quickly in a year.
Asian Paints has said that the competitive flux will remain in the sector for the next few years amid the fight to get bigger among players.