The reports note that the potential stake sale is expected to yield around Rs 11,141 crore
As the country’s paints industry is currently going through a phase of heightened competition and is facing margin pressure, Reliance Industries is eyeing to sell its 4.9 per cent stake in Asian Paints, according to media reports.
The reports highlighted that several new entrants are gaining market share in the country’s USD nine billion paints market. The potential stake sale by Reliance Industries is expected to yield around Rs 11,141 crore. The reports added that the company bought the stake for Rs 500 crore back in January 2008.
Reliance has roped in Bank of America to handle the transaction, through a single or multiple block deals, as per the reports, which also highlighted that the offers have been made at a discount of six to seven per cent to the current market price. The reports mentioned that other brokers as well as investment banks have also shown interest.
The reports noted that the market share of Asian Paints has also been impacted due to the increased degree of competition. The market share has dropped to 52 per cent from 59 per cent in the financial year 2025.
While Reliance is eyeing to sell the stake, the reports added that the company may still drop the plans if the bids are not at the desired price range. New entrants like Birla Opus have garnered around three to four per cent market share in the third quarter, the reports cited industry executives. More importantly, the company made inroads in the distribution network, which is known be a tough nut to crack.
