Akzo Nobel tumbles most since March 2020 after 10.7% equity block trade

Shares of Akzo Nobel India Ltd. tumbled 15 per cent on Wednesday after about 4.88 million shares changed hands in early trade. 

 

The paint company's stock fell as much as 15 per cent during the day to ₹3,080.2 per share, the biggest intraday fall since March 2020. The stock pared gains to trade 13.5 per cent lower at ₹3,123.4 apiece, compared to a 0.20 per cent advance in Nifty 50 as of 9:23 AM. 

 

Shares of the company fell for the second straight session and currently trade at 160 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 12.7 per cent this year, compared to a 9.5 per cent advance in the benchmark Nifty 50. Akzo Nobel has a total market capitalisation of ₹14,222.92 crore. 

Akzo Nobel India block deal

Akzo Nobel shares tumbled after about 4.88 million shares or 10.7 per cent equity traded hands in a block, according to Bloomberg data. Buyers and sellers were known immediately. It was the most traded Indian stock by value and the worst performer on NSE Nifty 500, S&P BSE 500 indexes. 

 

Earlier, the news agency reported that Imperial Chemical Industries planned to raise up to ₹1,290 crore by offloading its stake in Akzo Nobel. It further said that the share sale will be done at a floor price of ₹3,150 per share, about 13 per cent discount to Tuesday's closing price. 

 

Imperial Chemical is the promoter entity in Akzo Nobel, and it held 45.46 per cent stake as of the September quarter, according to BSE shareholding data. 

 

Meanwhile, earlier this month, JSW Paints completed the acquisition of a majority stake of 60.76 per cent in Akzo Nobel India from Akzo Nobel N.V. and its affiliates. In June, JSW Paints entered into definitive agreements to acquire up to 74.76 per cent stake in Akzo Nobel India from Akzo Nobel N.V. and affiliates, for a maximum consideration under the share purchase agreement of up to ₹8,986 crore. 

Akzo Nobel outlook post Q2 results

Asit C. Mehta Investment Intermediates Ltd said the industrial order book remains strong, providing healthy revenue visibility, with growth expected to revert to high single-digit levels.

 

The brokerage noted that management has highlighted robust momentum in the cement sector, which typically acts as a leading indicator for improved paint demand. It expects this trend, along with a repainting cycle likely to begin in late financial year 2026 to early financial year 2027, last seen in the post-Covid period in 2022, to drive a gradual recovery in decorative volumes.

 

Asit C. Mehta added that decorative volumes are expected to grow in the mid-to-high single digits in the third quarter of FY26, accelerating to double-digit growth in the fourth quarter, supporting overall momentum across both industrial and decorative segments.