Reliance Industries Offloads 3.5 Crore Shares of Asian Paints at Rs. 2,201 A piece

In a significant market move, Reliance Industries Ltd (RIL) has sold 3.5 crore equity shares of Asian Paints, one of India’s leading paint companies, at a price of ₹2,201 per share. The transaction was disclosed in a regulatory filing on June 12, marking one of the biggest block deals in recent months.

This sale was executed via Siddhant Commercials Ltd, a wholly-owned entity of Reliance. The total deal value stands at approximately ₹7,703 crore based on the share price mentioned in the filing.

RIL Still Holds 87 Lakh Shares in Asian Paints

Despite the massive offload, Reliance has retained 87 lakh shares in Asian Paints, showing it still holds a strategic interest in the company. This partial exit is seen as a portfolio rebalancing step rather than a complete withdrawal.

The development came as a surprise to market watchers, especially as it took place in the pre-open block window — a special session meant for bulk transactions — on June 12.

Asian Paints Faces Pressure Post Q4 Results

The share sale comes on the heels of disappointing Q4 results posted by Asian Paints for the January–March quarter of FY25. The company reported a net profit of ₹692 crore, falling short of Street expectations.

In contrast, a Moneycontrol poll had forecast a net profit of around ₹1,069 crore for the same period. The shortfall was mainly due to exceptional items impacting the bottom line.

The paint-maker recorded an exceptional loss of ₹182.96 crore, which included:

• A ₹83.7 crore loss on the divestment of its Indonesian subsidiaries

• Impairment losses of ₹77.8 crore on goodwill

• ₹21.5 crore on intangibles related to acquisitions in White Teak (Obgenix Software) and Causeway Paints (Sri Lanka)

These exceptional costs dragged down the profitability despite operational strengths in other areas.

Revenue Also Misses Estimates

Along with the profit dip, Asian Paints’ consolidated revenue also failed to meet market estimates. The company reported a 4.3% year-on-year decline in revenue for Q4 FY25, totaling ₹8,359 crore. This too was lower than the projected ₹8,619 crore.

Amit Syngle, Managing Director & CEO of Asian Paints, attributed the weakness to sluggish market conditions.

“The weak demand conditions prevalent for the past few quarters continued to affect the paint industry even in the last quarter of the financial year,” Syngle said in a post-result statement.

Market Reactions and Strategic Implications

The block deal by Reliance Industries has drawn significant attention from both retail and institutional investors. Analysts believe this move may have been timed in response to Asian Paints’ weaker-than-expected performance and to unlock capital from a long-held position.

While Reliance has not disclosed its future plans regarding the remaining shares, the partial sell-off indicates a potential strategic reshuffling of its investment portfolio.

Asian Paints shares saw some intraday volatility following the news but remained in focus due to the scale of the transaction.

Network18 Disclaimer

It is worth noting that Moneycontrol, the source of this report, is part of the Network18 group, which is controlled by the Independent Media Trust, with Reliance Industries Ltd as the sole beneficiary. This relationship has been disclosed in accordance with transparency norms.

Conclusion

The sale of 3.5 crore shares of Asian Paints by Reliance Industries marks a noteworthy event in the Indian stock market, especially given the backdrop of subdued earnings by the paint major. As RIL retains a stake of 87 lakh shares, the move doesn’t signify a full exit but certainly indicates a strategic portfolio adjustment.

The market will now keep a close eye on Asian Paints’ performance in upcoming quarters, especially as it navigates demand challenges and rationalizes its international ventures. For Reliance, this transaction could free up capital for new opportunities or bolster ongoing projects within its expansive business empire.

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