JSW Group to issue Rs 7,000 crore in zero-coupon NCDs to finance its planned 75 per cent stake acquisition in Akzo Nobel India
JSW Group is preparing to raise Rs 7,000 crore through non-convertible debentures (NCDs) to support its acquisition of Akzo Nobel India. The debt instruments will have a tenor of four years and seven months and will be structured as zero-coupon bonds, offering investors an effective internal rate of return of 8.5 per cent, according to media reports.
The issuance will be routed through JTPM Metal Traders, the group’s investment arm. The entire issue size is pegged at Rs 7,000 crore without any green-shoe option. Of this, around Rs 2,100 crore will be reserved for anchor investors, while the remaining Rs 4,900 crore will be available for bidding.
The stake acquisition is expected to cost up to Rs 9,400 crore, while the broader transaction, which also includes an open offer for minority shareholders, is estimated at nearly Rs 12,915 crore. The NCDs, scheduled to be issued on 29 September 2025, will be backed by corporate guarantees from JSW entities. Care Ratings has assigned an AA rating to the bonds.
The fundraising is aligned with JSW’s plan to secure as much as a 75 per cent stake in Akzo Nobel India. The agreement for the share purchase was signed by JTPM on 27 June 2025.
This acquisition will position JSW Paints as the fourth-largest player in India’s paint industry, which is valued at approximately Rs 80,000 crore. Asian Paints currently dominates with 59 per cent market share, followed by Berger Paints at 18 per cent, Kansai Nerolac at 15 per cent, and Akzo Nobel at 7 per cent.
