Jindal family sells stake worth ₹1.2K crore to fund AkzoNobel India buy

The Sajjan Jindal Family Trust has divested 2 percent of its stake in JSW Infrastructure Ltd — the second-largest commercial port operator in India — for ₹1,210 crore to various institutional investors, including the Singapore government, to finance a possible acquisition of AkzoNobel India.

The trust has sold a 0.88 percent share in JSW Infra to the Government of Singapore for ₹531 crore through block deals on Thursday. As per information from the National Stock Exchange (NSE), Singapore’s sovereign entity acquired approximately 18.4 million shares at ₹288 each from the promoter group.

The objective of the share sale is to meet the minimum public shareholding regulations set by the promoters in India. It is also intended to potentially fund JSW Group’s proposed purchase of AkzoNobel India from its Dutch parent, according to sources familiar with the situation. This acquisition of Akzo Nobel India will represent JSW’s latest strategic move into the consumer-oriented paints sector, where it seeks to gain scale in a market experiencing increased competition.

The purchase of AkzoNobel India will provide JSW with a strong national distribution network and the esteemed Dulux brand, enhancing its position in a market recently challenged by the Aditya Birla Group’s entry.

Parth Jindal, heir of the Jindal family, is spearheading discussions with Akzo Nobel NV, and bankers anticipate an announcement shortly. AkzoNobel NV owns a 75 percent share in its Indian subsidiary. On May 16, JSW Infrastructure shares ended at ₹288.25 on the BSE, giving the company a valuation of approximately ₹60,533 crore.

Akzo Nobel India finished with a rise of 3.3 per cent, ending at ₹3,597 per share. The Sajjan Jindal Family Trust owned an 80.72 per cent stake in JSW Infrastructure as of March 31, with total promoter ownership at 85.62 per cent.