Shares of Akzo Nobel India Ltd witnessed a sharp sell-off in early trade on Wednesday, plunging nearly 13 percent after a large block deal involving over 11 percent equity hit the market. The stock slipped to Rs 3,153.10, down 12.99 percent, marking one of its steepest single-day declines in recent months. With this fall, Akzo Nobel India shares are now down about 11.5 percent year-to-date.
Over 11% Equity Changes Hands in Block Deal
As many as 51.9 lakh shares, representing approximately 11.4 percent of the company’s total equity, were exchanged through block deals at an average price of Rs 3,159 per share. The total transaction value stood at around Rs 1,638.3 crore.
While the identities of the buyers and sellers were not officially disclosed, market reports indicate that Imperial Chemical Industries, a promoter entity, is likely to have been the seller.
Promoter Stake Under Watch
According to earlier reports by CNBC-TV18, Imperial Chemical Industries was preparing to offload up to 9 percent stake in Akzo Nobel India through block transactions. As of the July–September quarter, Imperial Chemical Industries held a 45.46 percent stake, while total promoter shareholding stood at 69.76 percent.
London-based Imperial Chemical Industries is an affiliate of Dutch paints major AkzoNobel, and has been gradually trimming its holding in the Indian arm.
History of Promoter Stake Sales
This is not the first instance of a major promoter sell-down. In September, Imperial Chemical Industries sold 22.77 lakh shares, equivalent to nearly 5 percent equity, for around Rs 765 crore at an average price of Rs 3,359 per share.
Those block deals saw participation from several institutional investors, including Nippon India Mutual Fund, WF Asian Smaller Companies Fund, Goldman Sachs Funds, Aditya Birla Sun Life Mutual Fund, and Bandhan Mutual Fund.
The latest transaction has reignited investor concerns around promoter stake dilution, leading to heightened volatility in Akzo Nobel India’s share price.
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