Reliance Offloads ₹7,703 Cr Worth of Asian Paints Shares; Retains 87 Lakh Shares

In a major market move, Reliance Industries Ltd (RIL) announced on Wednesday that it has sold 3.5 crore equity shares of Asian Paints at ₹2,201 per share, amounting to a transaction value of around ₹7,703 crore. The shares were held through Siddhant Commercials Ltd, a subsidiary of RIL.

Following the sale, RIL now holds 87 lakh equity shares in Asian Paints. The transaction was executed during the pre-open block window on June 12, which saw a notable 3.5% equity stake in the paint major changing hands.

The sale comes in the backdrop of a challenging quarter for Asian Paints, which recently posted Q4 FY25 consolidated net profit of ₹692 crore, missing market expectations by a significant margin. Analysts had estimated a profit of around ₹1,069 crore, according to a Moneycontrol poll.

Revenue also took a hit, falling 4.3% year-on-year to ₹8,359 crore, below the expected ₹8,619 crore. The company cited “weak demand conditions” that have continued to impact the paint industry, as per its MD & CEO Amit Syngle.

Asian Paints’ quarterly financials included an exceptional loss of ₹182.96 crore, stemming from multiple sources:
• A ₹83.7 crore loss from divestment of its Indonesian subsidiaries
• An impairment loss of ₹77.8 crore on goodwill related to its acquisition of Obgenix Software (White Teak)
• A ₹21.5 crore impairment related to Causeway Paints in Sri Lanka

This significant sell-off by RIL comes at a time when the paint industry is navigating turbulent waters marked by subdued consumer sentiment and external challenges in international markets.

Though RIL has reduced its stake, it still holds a significant minority stake, indicating sustained, if lowered, interest in one of India’s leading decorative paint businesses. Traders are watching closely to see how the two groups position themselves during the quarter ahead with changing demand and portfolio rebalancing