RIL offloads 3.5 crore shares at ₹2,201 each; retains 87 lakh shares as analysts turn cautious on Asian Paints’ long-term growth amid intensifying competition.
Mumbai | June 12, 2025 —
In a major portfolio move, Reliance Industries Ltd (RIL) has divested 3.5 crore shares in Asian Paints, amounting to a ₹7,703.5 crore deal. The shares were sold at ₹2,201 apiece via block deals during Thursday’s pre-market session.
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The transaction was executed through Siddhant Commercials Ltd, a wholly owned RIL subsidiary. Post-sale, RIL retains a residual stake of 87 lakh shares, or under 1%, in the paint major.
Strategic Exit After Years of Holding
Reliance had built its stake in Asian Paints back in January 2008, investing ₹500 crore during the global financial downturn. That investment appreciated massively over the years. However, in recent times, Asian Paints has underperformed its blue-chip peers.
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In FY25 alone, its market share fell from 59% to 52%, with Birla Opus Paints—an Aditya Birla Group venture—emerging as a strong challenger. Analysts say aggressive pricing, increased rebates, and muted demand have hurt both revenue growth and margins.
Asian Paints’ Performance Pressures
Asian Paints has posted subdued results across four consecutive quarters, despite lower raw material costs. CEO Amit Syngle admitted during a recent earnings call that the brand faces significant margin and market share pressure. “We will take calibrated action to defend our leadership,” he said.
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Market Dynamics & Shareholding Changes
As of March 2025, Siddhant Commercials held a 4.9% stake in Asian Paints. This has now largely been liquidated. The updated shareholding structure features:
- LIC as the largest public shareholder with 8.29%
- Retail investors holding 11.84%, spread across 11.73 crore small accounts
- Mutual funds holding 5.67%, with ICICI Prudential and SBI MF at 1.24% and 1.51%, respectively
Brokerages Turn Bearish
Nuvama Institutional Equities recently downgraded Asian Paints, slashing its FY26–FY27 EPS forecasts by 6–8%. The firm estimates a modest 7.2% CAGR in earnings through FY28. Its revised target price is ₹2,200, aligning closely with the exit price in Reliance’s block deal.
Nuvama now assigns a 45x forward earnings multiple, well below the 10-year average of 55x.
Tags:
Reliance Industries, Asian Paints, Stock Market, Reliance stake sale, Block Deal, Mutual Funds, Birla Paints, Paint Industry, Market Share, SEBI Regulation 30, Portfolio Management, Institutional Investors