JSW Paints Limited has raised ₹29.5 billion through three-year non-convertible debentures at a coupon of 5.50%, along with a structured redemption premium payable at maturity as per BSE bidding details.

The secured NCDs mature on November 9, 2029, and carry an annual interest payment. The issue is rated AA- with a stable outlook by ICRA.

The company received bids worth ₹24.3 billion, of which ₹20.65 billion was allocated through the bidding process, according to the bidding data. The remaining ₹8.85 billion was allocated to anchor investors.

The anchor allocations included ₹4.5 billion to SBI Aggressive Hybrid Fund, ₹1.4 billion to Aditya Birla Sun Life Mutual Fund, ₹850 million to Kotak Bonds and ₹750 million to Nippon India Mutual Fund.

ICICI Prudential Corporate Bond Fund was allocated ₹550 million, while Axis Liquid Fund received ₹300 million. HSBC Mutual Fund was allocated ₹200 million, and Tata Fixed Maturity Plan Series 55 Scheme A and UTI Asset Management Company allocated ₹150 million each.

The company's board had approved the issuance of up to ₹30 billion of rated, listed and redeemable NCDs through private placement. The October 21 exchange filing said the proceeds would primarily be used to redeem ₹28 billion of existing NCDs, including the redemption premium, and meet related fees, costs and expenses. Any balance could be used for general corporate purposes.

The refinancing follows JSW Paints' acquisition of an approximately 61% stake in JSW Dulux Limited in December 2025 for around 76 billion rupees, according to ICRA's rating rationale.

ICRA expects the acquisition to strengthen the company's scale, dealer network, brand portfolio and geographical reach. It expects the consolidated operating margin to improve to 10-13% in 2026-27 from 8.8% in 2025-26, supported by operating synergies.

However, the rating agency expects external debt to operating profit before depreciation, interest, taxes and amortisation to remain above four times in 2026-27 and 2027-28. It also flagged refinancing risk, as the NCDs are expected to be refinanced again at maturity. The JSW Group's financial flexibility and track record of competitive refinancing partly mitigate this risk, ICRA said.