JSW Infrastructure Stake Sale Raises Rs 1,210 Crore for AkzoNobel India Bid
| 2025-05-17
JSW Stake Divestment Aims to Fund AkzoNobel India Bid.
Sajjan Jindal Family Trust sells 2% stake in JSW Infrastructure for Rs 1,210 crore to fund a potential acquisition of AkzoNobel India and meet regulatory norms.
The Sajjan Jindal Family Trust has sold a 2% stake in JSW Infrastructure Limited, raising Rs 1,210 crore (approximately US$145 million), in a move that supports a planned acquisition of AkzoNobel India and helps meet public shareholding regulations in India.
According to data from the National Stock Exchange of India, the trust—part of the promoter group of JSW Infrastructure—sold approximately 42 million shares at an average price of Rs 288.21 per share. Among the institutional buyers was the Government of Singapore, which purchased around 18.4 million shares worth Rs 531 crore (approximately US$64 million) through block deals on Thursday.
JSW Infrastructure is the second-largest private commercial port operator in India, with a cargo handling capacity of 177 million tonnes per year. It is part of the JSW Group, led by Indian industrialist Sajjan Jindal.
Strategic Acquisition in the Works
The share sale is expected to assist in financing JSW Group’s proposed acquisition of AkzoNobel India, the Indian arm of Dutch multinational AkzoNobel NV. The potential deal would mark the conglomerate’s entry into the competitive decorative paints market, expanding its consumer-facing portfolio.
AkzoNobel India is known for its Dulux paint brand and possesses a strong nationwide distribution network. The acquisition would bolster JSW’s position in a sector that has recently seen heightened competition, including new entrants like the Aditya Birla Group.
Bankers familiar with the development said Parth Jindal, son of Sajjan Jindal, is leading negotiations with AkzoNobel NV, which currently holds a 75% stake in its Indian subsidiary. An official announcement regarding the deal is expected in the coming weeks.
Complying with Indian Regulatory Requirements
Beyond strategic expansion, the divestment is also aimed at aligning with regulations set by the Securities and Exchange Board of India (SEBI), which require all listed companies to maintain a minimum public shareholding of 25%.
JSW Infrastructure, which was listed on Indian stock exchanges in October 2023, has been given until September 2026 to reduce its promoter group’s shareholding to below 75%.
As of March 31, 2025, the Sajjan Jindal Family Trust held 80.72% of JSW Infrastructure, while the total promoter and promoter group ownership stood at 85.62%. Following the recent sale, the trust’s stake has decreased to 78.72%, and overall promoter holdings have dropped to 83.62%.
In a recent regulatory filing, JSW Infrastructure confirmed that the promoter group intends to sell up to 2% of the company's equity capital between May 13, 2025, and March 31, 2026, through open market transactions.
Market Response
JSW Infrastructure shares closed at Rs 288.25 on the Bombay Stock Exchange on May 16, giving the company a market capitalisation of approximately Rs 60,533 crore (about US$7.3 billion). Shares have gained 18% since the company’s market debut in October 2023.
AkzoNobel India shares also closed higher on the same day, rising by 3.3% to Rs 3,597 apiece.
Growth and Competition in India’s Paints Industry
India's decorative paints industry has traditionally been dominated by a handful of large players, including Asian Paints and Berger Paints. However, the market is experiencing intensified competition as industrial conglomerates like the Aditya Birla Group and now JSW Group explore opportunities in this fast-growing consumer segment.
The acquisition of AkzoNobel India, if completed, would position JSW Group to compete more effectively by leveraging an established brand and distribution network. It would also signify a broader diversification strategy by the traditionally infrastructure-focused group into more consumer-facing businesses.
For AkzoNobel NV, the sale of its Indian unit would be a significant move, potentially reshaping its Asia-Pacific footprint. The Dutch firm has operated in India for several decades and has built a strong presence through the Dulux brand and related coatings businesses.
With regulatory compliance driving divestment on one hand and strategic ambition on the other, JSW’s twin-track approach underlines its evolving priorities as it seeks to balance governance with growth.
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