JSW Paints plans to raise ₹3,300 crore through non-convertible debentures to partly fund its ₹12,915 crore acquisition of Akzo Nobel India.
The bonds, to be issued on Friday, are part of JSW Group’s ₹6,500 crore capital infusion plan.
ICRA has rated the proposed NCDs ‘AA- (Stable)’, noting comfortable debt servicing capacity supported by operating profits.
JSW Paints is planning to raise ₹3,300 crore through non-convertible debentures (NCDs) to partly finance the cost of acquiring a 74.76% stake in Akzo Nobel India Ltd. The deal, which will also trigger an open offer for the remaining shares, is expected to cost around ₹12,915 crore.
According to The Economic Times (ET), the bonds will be issued on Friday and form part of JSW Group’s ₹6,500 crore capital infusion plan.
On October 7, ICRA rated JSW Paints’ proposed NCDs at ‘AA- (Stable)’. The rating agency noted that the debentures have a bullet repayment at the end of five years (with a call/put option after three years), with only a portion of the coupon to be paid annually and the balance upon redemption. ICRA said the debt servicing obligations can be comfortably met from JSW Paints’ operating profits and expected dividends from Akzo Nobel India until maturity.
Nonetheless, it added that JSW Paints’ leverage “will remain high at above four times in the medium term.”
JSW Paints Limited (JSWPL), part of the JSW Group promoted by Sajjan Jindal and led by Managing Director Parth Jindal, plays a strategic role in supplying industrial paints to JSW Steel. So far, JSW Steel has infused ₹750 crore, while South West Mining Limited has contributed ₹150 crore to support JSWPL’s capital expenditure, debt repayment, and working capital needs. ICRA expects continued promoter backing for the planned acquisition, which will be funded through a mix of promoter infusion and borrowings at the JSWPL level.
Following the acquisition, JSWPL’s business profile is expected to strengthen significantly through operational synergies, increased scale, a broader dealer network, and access to advanced technologies. The merger will position the combined entity, JSWPL and Akzo Nobel India, as India’s fourth-largest decorative paint company and the second-largest in the industrial segment, with the premium 'Dulux' brand further enhancing its portfolio. The company will also gain entry into new industrial segments such as vehicle refinishes and marine coatings.
JSWPL’s revenues, which stood at ₹2,155 crore in FY25, are projected to rise sharply in FY26 and beyond, supported by synergies in manufacturing, logistics, and marketing. ICRA anticipates healthy low double-digit operating margins by FY27, marking a strong turnaround from JSWPL’s operating losses in FY25.
The Akzo Nobel India deal was first announced in June, with the initial 74.76% stake valued at ₹9,400 crore. The transaction received approval from the Competition Commission of India on 16 September 2025 and is expected to be completed within the current financial year.
The total deal value, including the open offer for the remaining shares, is estimated at about ₹12,915 crore.
Following the transaction, the Dutch parent of Akzo Nobel India will retain the powder coatings business and the company’s research and development centre.
