Why Akzo Nobel India share price is falling

December 17, 2025

Small-cap stocks have been under intense selling pressure in recent weeks, retreating sharply after months of strong outperformance.

The BSE Smallcap index has fallen over 5.3% in the past month, from 53,443 points on November 17 to around 50,608 points in intraday trade on December 17.

This correction has occurred despite a reasonable recovery in profits across all sectors and generally healthy balance sheets.

Market participants attribute the weakness largely to retail investor fatigue as returns have remained subdued over the past year compared to the sharp gains seen in the earlier phase of the rally.

Amid the broader sell-off, Akzo Nobel India has also come under pressure. Shares of the paint maker fell as much as 15% on Wednesday after nearly 4.88 million (m) shares changed hands in early trading.

The stock hit an intraday low of Rs 3,080.2 per share, marking the steepest single-day decline since March 2020.

This is why Akzo Nobel India shares are falling.

# Block deal

Akzo Nobel India’s share price came under pressure after a major block deal, in which around 5.2 million shares, about 11.4% of the company’s equity, changed hands at Rs 3,159 per share, valuing the transaction at almost Rs 16.4 billion.

Although the buyers and sellers have not been officially revealed, reports suggest that the promoter Imperial Chemical Industries was the seller.

The deal followed reports earlier this week that Imperial Chemical Industries planned to divest a stake of up to 9% through block deals. As of the September quarter, the promoter entity held 45.5% stake, while the total promoter stake stood at 69.8%.

The latest transaction adds to a series of promoter stake sales, including a 5% share sale in September at higher levels.

The increased supply of shares and continued dilution of the promoters weighed on investor sentiment, leading to a decline in the share price.

What now?

Going forward, Akzo Nobel India is expected to enter a new phase under the majority ownership of JSW Paints.

With JSW Paints now owning over 61% stake, the focus is likely to shift to integrating Akzo Nobel India’s strong portfolio of brands, including Dulux, with JSW Paints’ distribution reach, manufacturing capabilities and capital backing.

This combination positions the company to more aggressively scale its business in a paint market that is expected to witness continued growth, driven by housing, infrastructure and rising premiumization.

How Akzo Nobel India Research shares have performed recently

In the past five days, Akzo Nobel India shares have fallen more than 10%.

The stock touched its 52-week high of Rs 3,942.2 on January 20, 2025 and its 52-week low of Rs 3,045.9 on March 3, 2025.

About Akzo Nobel India

Akzo Nobel India is an India-based coatings company engaged in the manufacturing, trading and sale of paints and allied products. The business units include decorative paints, automotive and specialty coatings, powder coatings, industrial coatings and marine and protective coatings.

The decorative paint trade offers a range of products, including paints, lacquers and varnishes.

It also supplies a range of mixing machines, color concepts and training initiatives for the construction and renovation industry.

ASC provides coating solutions for various industries in India such as automotive original equipment manufacturer coatings, consumer electronics coatings, vehicle refinishing and specialty coatings.

For more details, see AKZO NOBEL’s company information sheet and quarterly results.

Investors should evaluate the company’s fundamentals, corporate governance and stock valuations as key factors when conducting due diligence before making investment decisions.

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