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JSW Paints plans to raise ₹3,300 crore on Friday through non-convertible debentures to help finance its planned acquisition of AkzoNobel India, according to people familiar with the matter.The bond issue is part of a broader ₹6,500 crore capital infusion planned by the JSW Group, which had interests spanning steel, energy, infrastructure, cement and sports. The funds will be used to partially fund the purchase.The NCDs carry a five-year maturity with a bullet repayment at the end of the term and a call and put option after three years. The bonds are expected to be priced at about 9.5%, the people said."NCDs will open for subscription on November 7 and pay-in date is November 10," said one of the persons, who did not wish to be identified.A JSW spokesperson declined to comment.Live EventsJSW Paints, part of the Sajjan Jindal-led JSW Group, announced in June that it would acquire 74.76% in AkzoNobel India. The company said the deal would be financed through a mix of promoter-level equity infusion and borrowings at the paint unit. As of March 31, the Sajjan Jindal Family Trust owned 85.8% of JSW Paints, with the remainder held by other JSW Group entities and individuals.Bond issue, part of the ₹6,500-cr infusion by the group, will carry 9.5% coupon & 5-year maturity While the maximum consideration for the stake purchase is pegged at ₹9,400 crore, the total deal value, including an open offer for remaining shares, is estimated at about ₹12,915 crore.After the acquisition, the combined entity is likely to become the country's fourth-largest decorative paints company and the second-largest industrial paints player. The deal will give JSW Paints access to AkzoNobel's premium Dulux brand and its technologies in vehicle refinish and marine coatings segments where JSW Paints lacks presence, states ICRA report.AkzoNobel India will retain its powder coatings business and research and development centre. JSW Paints reported revenue of ₹2,155 crore for 2024-25, which is expected to go up after the acquisition.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onJSW PaintsAkzoNobel Indiacapital infusiondecorative paintsindustrial paintsSajjan Jindalicra (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onJSW PaintsAkzoNobel Indiacapital infusiondecorative paintsindustrial paintsSajjan Jindalicra(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
