Akzo Nobel Shares Plunge 15% on Imperial Chemical's Block Deal
Akzo Nobel India shares plummeted 15% to Rs 3,080 on Wednesday following news of Imperial Chemical Industries offloading a 9% stake (48.8 lakh shares) through a discounted block deal. The significant drop occurred despite Akzo Nobel reporting a remarkable 2119.8% increase in Q2FY2025-26 net profit. While net profit soared, the company's revenue and EBIT experienced slight declines, highlighting market sensitivity to large institutional stake sales over fundamental performance in this instance.
Akzo Nobel India experienced a sharp decline in its stock value on Wednesday, with shares nosediving 15% to settle at Rs 3,080. This significant market reaction was triggered by reports indicating that Imperial Chemical Industries (ICI) was likely offloading a substantial 9% stake in Akzo Nobel India. The sale, comprising 48.8 lakh shares, was reportedly executed through a block deal at a discounted price, causing investor apprehension and a subsequent sell-off. The plunge in share price is particularly noteworthy as it occurred despite Akzo Nobel India's robust financial performance for the second quarter of fiscal year 2025-26. The company had reported an extraordinary 2119.8% surge in its net profit during Q2FY26. However, this impressive profit growth was juxtaposed with slight declines in both revenue and Earnings Before Interest and Taxes (EBIT), suggesting some underlying operational challenges or market pressures not directly related to the block deal. Nevertheless, the dominant factor influencing the stock's performance on this day appears to be the large-scale institutional selling by Imperial Chemical, underscoring how significant stake divestments can overshadow positive earnings reports and impact investor sentiment, especially when executed at a discount. The market's focus evidently shifted from the strong profit growth to the implications of a major shareholder reducing its position.
