Reliance Industries Ltd (RIL) has sold 3.5 crore equity shares of Asian Paints on June 12 at ₹2,201 per share, according to a regulatory filing. The deal was executed via Siddhant Commercials Limited, a subsidiary of RIL.
Following this transaction, RIL now retains 87 lakh shares in Asian Paints.
"Please note that 3.5 crore equity shares of Asian Paints held by Reliance Industries Limited through Siddhant Commercials Limited have been sold today at a price of ₹2,201 per share, leaving a balance of 87 lakh equity shares of Asian Paints," RIL stated in its BSE filing.
The bulk deal, executed during the pre-open block window, accounted for a 3.5% equity stake in the paint manufacturer, amounting to approximately ₹7,703 crore.
Asian Paints’ Performance Under Pressure
The share sale comes at a time when Asian Paints is under financial stress. The company reported a Q4 FY25 net profit of ₹692 crore, significantly below analysts’ expectations. A Moneycontrol poll of brokerages had forecasted a profit of around ₹1,069 crore for the January–March quarter.
Adding to the pressure, the company reported an exceptional item of ₹182.96 crore, which includes:
-
₹83.7 crore loss from divestment of its Indonesian subsidiaries
-
₹77.8 crore impairment on White Teak (Obgenix Software)
-
₹21.5 crore impairment on Causeway Paints (Sri Lanka)
Revenue also declined by 4.3% YoY, falling to ₹8,359 crore, compared to the projected ₹8,619 crore.
"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," said Amit Syngle, Managing Director & CEO of Asian Paints.
Market Impact & Context
The block deal and underwhelming Q4 results have drawn significant attention from investors and analysts alike. With Reliance trimming its stake and Asian Paints battling industry-wide slowdown, the development signals a cautious outlook in the decorative paints segment amid muted demand.