Billionaire Sajjan Jindal and other JSW group promoters are in talks to pledge part of their shares in JSW Steel and JSW Paints.
The money raised will help fund their planned ₹9,000-crore purchase of AkzoNobel India, according to people with knowledge of the matter.
If the deal goes through, it will greatly boost JSW’s presence in the Indian paints market. Right now, the company operates in this space through JSW Paints, which is a fairly new player.
Sources say the Jindal family is likely to put in about ₹2,000 crore as equity for the deal. The remaining ₹7,000 crore will be raised through a mix of loans and structured credit.
JSW is teaming up with Standard Chartered Bank, Morgan Stanley, and Mitsubishi UFJ Financial Group (MUFG) to arrange the funding for the deal.
According to sources, JSW is also in talks with global credit investment firms Farallon Capital and Ares Management to secure up to ₹4,000 crore in mezzanine funding.
Talks have reached an advanced stage, but neither Sajjan Jindal’s JSW Group nor AkzoNobel India has made any official announcement yet. Both companies chose not to comment.
AkzoNobel India, the Indian arm of the Dutch paints and coatings giant, is a well-known and trusted brand in the country.
AkzoNobel India owns the Dulux brand and holds a solid position in both decorative and industrial coatings. Although the parent company hasn’t confirmed any plans to leave India, growing interest from buyers has emerged as the paints sector sees more consolidation.
The planned acquisition comes amid rising competition in India’s paints market. Grasim Industries, from the Aditya Birla Group, recently launched Birla Opus, heating up the race with established players like Asian Paints, Berger Paints, and AkzoNobel.
Launched in 2019, JSW Paints is still a challenger in a market ruled by long-time leaders. Buying AkzoNobel India could give JSW a major boost by offering access to an existing distribution network, manufacturing units, and a strong lineup of popular products.
Sources say JSW of Sajjan Jindal plans to pledge promoter shares in phases to prevent any major hit to the credit ratings of its key businesses, especially JSW Steel. One source noted, “The group wants a balanced capital structure that won’t put pressure on its current operations.”
AkzoNobel India has a market value of under ₹8,000 crore. The deal being considered would include a control premium. However, it’s still unclear whether JSW will go for a full acquisition or just a controlling stake, as discussions are still ongoing.
The JSW Group has been expanding beyond steel and energy, with growing interest in cement, paints, and infrastructure. If the AkzoNobel India deal goes through, it would be one of the group’s most notable moves in the consumer space.
