Paints and coatings maker Akzo Nobel India Ltd on Monday (January 6) said its parent entity, Akzo Nobel NV (ANNV), has proposed a strategic evaluation of its powder coatings business and international research centre (R&D operations).

The proposal involves the potential sale of these assets to an indirect wholly-owned subsidiary of ANNV.

“…we do hereby intimate the stock exchanges that Akzo Nobel NV (ANNV), the ultimate holding/promoter/parent entity of Akzo Nobel India Ltd, has requested the Board of Directors of the company to consider, evaluate and thereafter, start taking exploratory steps towards (a) a potential sale of the Company’s Powder Coatings business and its International Research Centre (R&D operations) to a separate indirect wholly owned subsidiary of ANNV…,” Akzo Nobel India said in a regulatory filing.

Additionally, the proposal includes Akzo Nobel India potentially acquiring the decorative paints’ intellectual property owned by ANNV.

At its meeting on January 6, 2025, the board of directors of Akzo Nobel India authorised the management to commence exploratory steps for evaluating these potential transactions. The board stated that any decisions will be subject to further consideration and adherence to applicable legal and procedural requirements.

“The Board of Directors of the company, at its meeting held today, i.e., 6th January 2025, took note of the above said and authorized the company’s management to commence exploratory steps as may be required to evaluate and examine the aforesaid Potential Transactions,” it added.

Shares of Akzo Nobel India Ltd ended at ₹3,433.50, down by ₹65.70, or 1.88%, on the BSE.