Stock Crash: Akzo Nobel shares tank 14% after equity worth ₹1,640 crore traded in block deal

Shares of Akzo Nobel India fell as much as 14% on Wednesday, December 17, after a large trade took place in the stock, on anticipated lines.

As many as 51.9 lakh crore shares, or 11.4% equity, of Akzo Nobel India Ltd. worth ₹1,638.5 crore changed hands at ₹3,159 per share in a block deal on Wednesday, December 17.

Buyers and sellers in the transaction are not officially known.

On Tuesday, December 16, CNBC-TV18 had reported, citing sources that Akzo Nobel's promoter entity Imperial Chemical Industries was set to sell up to 9% stake in the company via a block deal.

Sources said the offer size was ₹1,290.6 crore, with a floor price of ₹3,150 per share. The floor price was a discount of 13% compared to Tuesday's closing price.

At the end of the September quarter, the promoter Imperial Chemical Industries held 45.46% stake in Akzo Nobel India Ltd.

On another note, the company reported a sharp increase in its consolidated net profit in the second quarter at ₹1,682 crore from ₹97 crore in the previous year. This was primarily driven by a one-time exceptional gain of ₹1,874 crore.

Akzo Nobel's revenue declined 15% to ₹835 crore from the previous year. It was down 16.1% sequentially. Its other income fell to ₹7.7 crore from ₹9.1 crore in the year-ago period.

Shares of Akzo Nobel India Ltd. were trading 14.2% lower at ₹3,108.9 apiece around 9.20 am on Wednesday. The stock has declined 12.8% this year, so far.

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