Stake Buy: Promoter UK Paints lifts stake in Berger Paints to 64.57%

Synopsis: Promoter UK Paints has raised its stake in Berger Paints to 64.57% through an off-market acquisition of 14.48% equity under a court-approved amalgamation, tightening promoter control.

The shares of the company engaged in the manufacturing and selling of paints, and also offer emulsions, enamels, wood finishes, and protective coatings saw its shares in spotlightafter the promoter raised its stake in it.

With a market capitalisation of Rs. 62,021 crores, the shares of Berger Paints India Ltd are currently trading at Rs. 531.95 per share, down by nearly 2% in today’s market session, making a low of Rs. 529.20, from its previous close of Rs. 537.90 per share.

UK Paints (India) Private Limited, the major promoter of Berger Paints, has disclosed the acquisition of a significant additional stake in Berger Paints India Limited pursuant to a court-approved scheme of amalgamation. 

The transaction involves the acquisition of 16.87 crore equity shares, representing 14.48% of Berger Paints’ equity, through an off-market transfer as part of the merger of UK Paints (Overseas) Limited and B.J.N. Holdings (I) Limited into UK Paints (India) Private Limited. The scheme was approved by the Jersey Financial Services Commission and the National Company Law Tribunal (NCLT), Chandigarh Bench.

Following this acquisition, UK Paints (India) Private Limited) has increased their total shareholding in Berger Paints India Limited to 75.28 crore shares, equivalent to 64.57% of the company’s paid-up equity capital, up from 50.09% earlier. 

Berger Paints India Ltd is one of India’s leading paint companies, specialising in decorative and industrial coatings. With a strong presence across the country, it offers a wide range of products, including emulsions, enamels, wood finishes, and protective coatings. Known for innovation and premium quality, and serves both retail consumers and industrial clients.

It demonstrates strong financial health, with a ROCE of 24.9% and ROE of 20.3%, supported by a low debt-to-equity ratio of 0.11. The company also maintains a healthy dividend payout of 36.2%, reflecting consistent profitability and shareholder returns.

Sales of the company fell by 12% from Rs. 3,201 cr in Q1FY26 to Rs. 2,827 cr in Q2FY26. Operating profit declined by 33% to Rs. 352 cr from Rs. 528 cr. Net profit also fell by 16% from Rs. 315 cr to Rs. 206 cr.

As of Q2FY26, promoter holding stands at 74.99%. FII’s decreased their stake from 5.59% in Q1FY26 to 5.35% in Q2FY26. DI’s rose stake to 10.71% from 10.45%. Public holding stands at 8.95%.

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