UPDATE 1: JSW Group Plans to Privately Place INR 60B NCDs in Two Tranches For Akzo Nobel India Unit Acquisition, Coupon Around 8% to 8.5%; Kotak, StanC, MUFG, J.P. Morgan Appointed as Arrangers

Mon Jun 30, 2025 03:15 AM ET:

JSW Group is planning to privately place a total of INR 60 billion ($701.5 million) three-to-five year non-convertible debentures or NCDs through its holdco and opco entities to partly fund its acquisition of Akzo Nobel India Ltd., or ANIL, a source close and a source familiar with the situation said. The NCDs will offer a coupon of around 8% to 8.5%, the source close said.

While INR 30 billion will be raised at a holdco entity of JSW Group – JSW Holdings Ltd., another INR 30 billion will be raised at the opco– JSW Paints Ltd., the sources said.

Kotak Mahindra Bank and Standard Chartered Bank have been mandated for the debt to be placed at the holdco level while Mitsubishi UFJ Financial Group and J.P. Morgan have been mandated as arrangers for debt placing at the opco level, the sources said.

Timing of the NCD issue will depend on receipt of regulatory approvals for the transaction and completion of the mandatory tender offer to acquire the remaining stake from the public shareholders, the sources said.

JSW Group promoters will also infuse around INR 30 billion equity for the acquisition, both the sources said, adding that the promoters are also considering raising debt and are in discussions with private credit funds for mezzanine debt. The source close also said that the promoters are evaluating bringing in a private equity investor to fund the transaction.

JSW Paints Ltd. will acquire 74.76% stake in ANIL for a maximum consideration under the share purchase agreement of up to INR 89.86 billion, the company said in a press release on June 27. The proposed transaction is subject to approval from the Competition Commission of India, or CCI, and the completion of a mandatory tender offer to the public shareholders of ANIL.

On the same date, Akzo Nobel N.V. announced that it has signed an agreement to sell its up to 75% shareholding in ANIL to JSW Paints for a total enterprise value of about €1.4 billion, as reported.

The deal value represents an EV/EBITDA multiple of 22x, and the acquisition includes AkzoNobel’s liquid paints and coatings business in India. It is expected to be completed in the fourth quarter of 2025, as reported.

This acquisition positions JSW Paints as “one of the major players” in the paints sector, which is expected to see robust growth in the years ahead, the company said in the release.

JSW Paints is a part of the diversified $23 billion JSW Group.The company currently has two manufacturing units, an industrial coatings facility at Vasind in Maharashtra and decorative paints facility at Vijayanagar in Karnataka with a combined capacity of 170,000 kilo litre per annum, according to the company’s website.

JSW Group did not immediately respond to Octus’ email requesting comments.
 

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Original Story 2:50 a.m. UTC on June 27, 2025

 Akzo Nobel to Sell Majority Stake in Indian Unit to JSW Paints for €1.4B EV

Relevant Document:
Media Release

Akzo Nobel N.V. said in an announcement on June 27 that it has signed an agreement to sell its up to 75% of its shareholding in Akzo Nobel India Ltd., or ANIL to JSW Paints for a total enterprise value of about €1.4 billion.

The deal value represents an EV/EBITDA multiple of 22x, and includes AkzoNobel’s liquid paints and coatings business in India.The net cash proceeds from the deal are expected to be about €900 million.

AkzoNobel will retain the full ownership of the India powder coatings business and International Research Center, both currently a part of ANIL.

The deal is expected to be completed in the fourth quarter of 2025and will be subject to customary closing conditions including regulatory approvals.