Akzo Nobel Bulk Deal: Goldman Sachs Buys shares worth Rs 106 Cr as Promoter Offloads Rs 1,296 Cr Stake

Goldman Sachs has bought Akzo Nobel India shares through a block deal of Rs 106 crore through its affiliate, Goldman Sachs Funds-Goldman Sachs India Equity Portfolio.

The purchase occurred shortly after the promoter group, Imperial Chemical Industries, sold nearly 41 lakh shares worth Rs 1,296 crore at a significant discount, resulting in an immediate decline of 14% in the share price from Rs 3,130 on the NSE.

Although there was strong profit growth reported for Q2 FY26, the purchase of Akzo Nobel shares by Goldman Sachs showed how this sale affected investor sentiment, and the company's share price fell below critical moving averages.

So, the question is, what does the bulk purchase by Goldman Sachs indicate about the future of Akzo Nobel's ownership structure and investor sentiment?

How Did the Bulk Deal Transaction Unfold?

Goldman Sachs purchased approximately 3.36 lakh shares at a price of Rs 3,150 each, which represented a 13% discount to the last closing price of Rs 3,624, making it a strategic buy for value in a volatile market.

Goldman Sachs is now considered to be a major institutional shareholder of Akzo Nobel and will play a key role in future value addition. The promoter group’s sale led to a reduction in its stake from 45.46% as of 30 September 2025, indicating a move towards strategic realignment. (MSN)

Using a bulk market mechanism to execute a deal enables the ability to transfer large volumes of shares quickly, which is typical of a promoter stake reduction transaction. Akzo Nobel saw the share price decrease over 11% on an intraday basis, indicating that the market is highly sensitive to changes in the ownership structure of paints and coatings companies.(MSN)

This significant movement in the share price occurred despite the company's operating metrics still declining, and its earnings growing significantly, making it difficult for value investors to determine the actual value of the company.

Promoter Stake Reduction Impact

The sale of approximately 41 lakhs of shares by Imperial Chemical Industries greatly diluted the promoter control of the company and represented the value of approximately Rs 1,296 crores at the time of the sale. Such a reduction in promoter control is typically used to help finance global reallocations of assets or to unlock value.

However, they also often create short-term selling pressure on the stock, as evidenced by a 14% decline in share price to Rs 3,130. Currently, the stock is trading below the 50-day simple moving average of Rs 3,374.90 and the 200-day simple moving average of Rs 3,418.40. Therefore, the stock is experiencing negative technical momentum according to Trendlyne.

Within mid-cap companies, there is a growing trend in promoter stake sales which attract interest from institutional investors that are looking to purchase undervalued companies that have the potential for growth within the expanding paint industry in India.

Financial Performance Amid Volatility

Akzo Nobel reported a profit after tax of ₹1,682.7 crore for Q2 FY26, representing a sharp increase of 2,119.8% over the year-ago quarter’s profit of ₹75.8 crore. The year-on-year jump reflects a low base in the corresponding period, while the current quarter’s PAT includes exceptional items.

Core operations remain performing well, with revenues from operations at Rs 834.9 crores, which were down 1.5% from Rs 847.7 crores in the previous year, and EBIT of Rs 92.3 crores down 2.4% from Rs 94.5 crores, shows continued stable margins being pressured slightly.

The above numbers certainly indicate the underlying demand for decorative paints is still there, along with competitive pressures and the after-effects of divestiture.

The large jump in profits versus the slower growth in operational results depicts the disparity that has created two different responses to the same transaction, namely that from the bulk sale to Akzo Nobel.

With Goldman Sachs investing with an intent to acquire a stake in Akzo Nobel, one major question investors are facing is how will this shift in ownership position with respect to strategic objectives and recovery of Akzo Nobel stock given the mixed quarter results?

References:

MSN
Economic Times