Asian Paints shares in focus as RIL sells 3.6% stake to SBI MF, Brent crude up over 12%
Asian Paints share price: Reliance sold a 3.6% stake in Asian Paints to SBI Mutual Fund in a Rs 7,704 crore block deal, one of India's largest. Additionally, Brent crude's 12% surge may impact input costs for paint makers, potentially affecting margins amid rising geopolitical tensions in the Middle East.
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RIL equity stake sale to SBI MF
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Brent Crude prices surge over 12%
Shares of Asian Paints are likely to remain in focus on Friday after Reliance Industries Ltd (RIL) sold a 3.6% equity stake to SBI Mutual Fund via a block deal on Thursday. Additionally, the stock may also be in the spotlight as Brent Crude prices surge over 12% in today's session.SBI Mutual Fund, India's largest asset manager, has acquired a 3.6% stake in the company for a hefty Rs 7,704 crore ($900 million). This landmark transaction marks one of India's largest bilateral block deals, further bolstering Asian Paints' standing in the market.The shares were purchased at Rs 2,201 per share, with Reliance reportedly monetising a portion of its investment in Asian Paints, having held the shares through Siddhant Commercials Ltd.The transaction reflects a near 23-fold return on Reliance's 17-year-old investment, offering a significant windfall for the conglomerate.The company's shares are expected to see increased attention also after a sharp rise in Brent Crude prices, which surged over 12%, hitting their highest levels in months.This surge in oil prices comes amid escalating geopolitical tensions in the Middle East, particularly with the recent Israeli strikes on Iran. The market is reacting to fears of disrupted oil supplies, with analysts predicting that an escalation in the conflict could lead to significant supply chain disruptions, especially through critical shipping routes like the Strait of Hormuz.Crude oil prices affect paint companies because many raw materials used in paint, like resins and solvents, are made from petroleum. When crude prices rise, the cost of these materials goes up, leading to higher production costs for paint companies. This can result in increased prices for consumers and potentially lower demand, especially in sectors sensitive to cost increases.Shares of Asian Paints closed flat at Rs 2,218.05 on the BSE on Thursday.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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