Imperial Chemical may sell 9% stake in Akzo Nobel via ₹1,290-crore block deal

Imperial Chemical Industries is likely to sell up to a 9% stake in Akzo Nobel India Ltd through a block deal, sources in the know told CNBC-TV18.

The offer size is pegged at ₹1,290.6 crore, with a floor price of ₹3,150 per share, sources close to the development said. The floor price represents a discount of 13.1% to the current market price, the sources added.

Second Quarter Results

Akzo Nobel India Ltd reported a sharp rise in consolidated net profit for the July-September quarter, posting ₹1,682

crore, up from ₹97 crore in the same period last year. The surge was primarily driven by a one-time exceptional gain of ₹1,874 crore recorded during the quarter.

Also Read: CCI clears JSW Paints’ acquisition of up to 75% stake in Akzo Nobel India

Despite the profit boost, the company’s revenue declined 15% year-on-year to ₹835 crore. On a sequential basis, revenue fell 16.1%, while net profit rose significantly. Other income also dipped to ₹7.7 crore from ₹9.1 crore a year ago.

Total expenditure for the quarter, including finance costs, stood at ₹745 crore, down from ₹860 crore in the corresponding period last year. However, finance costs rose sharply by 53.3% to ₹2.3 crore. The company’s tax outgo increased substantially to ₹289 crore, compared to ₹33.9 crore in the year-ago quarter.

Shares of Akzo Nobel India Ltd ended at ₹3,622, down by ₹11.90, or 0.33%, on the BSE today, December 16.

Also Read: Akzo Nobel India sees competitive intensity in paints continuing, plans next growth phase