Reliance Sells Asian Paints Shares for Huge Profit: Reliance Industries Limited (RIL) has sold a 3.6% stake in Asian Paints to SBI Mutual Fund for Rs 7,704 crore ($900 million). This is one of the biggest deals where a single buyer and seller made a trade without involving multiple investors.
Key Details of the Deal
- Shares Sold: 3.5 crore shares
- Price per Share: Rs 2,201
- Current Market Price: Rs 2,218.05 (as of Thursday)
- Profit for Reliance: Nearly 23 times the original investment
Reliance still holds 87 lakh shares in Asian Paints. The company first bought a 4.9% stake in Asian Paints in 2008 for Rs 500 crore.
Why Did Reliance Sell Its Stake?
Reliance has been slowly selling its shares in Asian Paints over the past few weeks. Earlier, they planned a bigger sale but stopped because buyers wanted a 6-7% discount on the market price.
This sale helps Reliance make money from its long-term investment in Asian Paints.
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Asian Paints Facing Tough Competition
Asian Paints, once the leader in India’s paint industry, is now struggling due to new competitors like:
- Aditya Birla Opus
- Grasim Industries
- JSW Paints (planning to buy Akzo Nobel’s Dulux brand)
Asian Paints’ Market Problems
- Market Share Drop: From 59% to 52% in FY25
- Weak Sales Growth: Only 2.5% volume growth (lowest in 20 years)
- Stock Performance: Down 17% in the last 3 years
Experts say the paint industry will remain highly competitive, making it hard for Asian Paints to recover soon.
What’s Next for Asian Paints?
- More Competition: New players like Grasim and JSW Paints will increase pressure.
- Slow Demand: The market is not growing fast, and FY26 looks tough.
- Strong Distribution: Asian Paints still has 74,129 dealers and a strong global presence.
Final Thoughts
Reliance made a smart move by selling its stake at a good profit. Meanwhile, Asian Paints must fight hard to keep its top position in the paint industry.