Asian Paints has acquired the remaining 40% stake in Obgenix Software Private Limited, the parent company of White Teak, making it a wholly-owned subsidiary. The official announcement was made via a stock exchange filing on Friday, June 27, 2025. Asian Paints purchased the final tranche of 160,400 equity shares from White Teak's co-founders, Pawan Mehta and Gagan Mehta, for ₹188 crores.
This acquisition completes a strategic, phased acquisition that began in April 2022, when Asian Paints acquired a 49% stake in White Teak. This was followed by the acquisition of an additional 11% stake in June 2023 for ₹54 crore. In 2023, Asian Paints also paid White Teak ₹59.5 crore as an earn-out based on the achievement of financial milestones. With the additional 11% stake purchase, Asian Paints' total stake in White Teak increased to 60%. The company had previously announced that the remaining 40% stake would be acquired during FY26 for a maximum consideration of ₹360 crore.
White Teak is a private limited company that designs, trades, and deals in decorative lighting products and fans. In FY23, White Teak's revenue nearly doubled to ₹108 crore from ₹57 crore in FY22. The company was expected to maintain a robust growth trajectory of approximately 50% the following year. In fiscal year 2023, White Teak had a turnover of ₹108.5 crore and a net worth of ₹24.6 crore as of March 31, 2023.
When Asian Paints initially acquired a 49% stake in White Teak in April 2022, the agreement included an earn-out of up to ₹114 crore, payable after a year, contingent on achieving mutually agreed financial milestones. At the time of the initial acquisition, it was agreed that the remaining 51% stake in White Teak would be acquired in a phased manner. Pawan Mehta and Gagan Mehta would continue to lead the business as CEO and COO, respectively.
The decorative lighting business is currently valued at approximately ₹1200 crore and is growing at a healthy rate of around 20%. This sector is largely dominated by the unorganized sector, primarily through imports from China.
On Friday, Asian Paints shares closed at ₹2,359.25 on the BSE, up 3.06% for the day. The company's shares have gained 4.68% in the past 5 days and 2.55% over the past month. On a year-to-date basis, the stock has increased by 2.49%.
However, a recent report from Citi maintains a 'Sell' rating on Asian Paints with a target price of ₹2,100, indicating a potential downside from current levels. The company's fourth-quarter financial results showed some weakness, with net profit for the March 2025 quarter coming in at ₹700.8 crore, a 45% drop compared to the previous year. Asian Paints' Q4 revenue declined 4.3% year-on-year to ₹8,359 crore, and EBITDA also declined by 15% YoY to ₹1,407 crore. Volume growth in the core decorative paints business was only 1.8%.
