Mukesh Ambani's Reliance Industries to sell its entire stake in this company after 17 years, the name is…
(File)
Mukesh Ambani led Reliance Industries is reportedly going to sell its entire 4.9% stake in Asian Paints after holding the investment for 17 years. According to a report by The Economic Times , RIL is going divest from Asian Paints, a leading paint company. The decision is taken by the company after Asian Paints is facing margin pressures and huge competition from new players in the industry.
RIL has engaged Bank of America (BoFA) to manage the transaction, which may happen through one or multiple block deals. Offers for the stake are being made at a 6–7% discount to Asian Paints' current market price, according to a media report. Investment banks and brokers who are trying to bring buyers for the stake, according to the ET report.
At the current closing price of Rs 2,323 per share, Reliance Industries' 4.9% stake is valued at Rs 11,141 crore ($1.31 billion). Reliance had originally invested Rs 500 crore in Asian Paints in January 2008. If considered dividends received in these many years, the investment now has given around 24 times return.
However, Asian Paints' performance lagged behind broader market indices in recent years. Over the last year, its shares fell by 19%, compared to an 11.5% rise in the BSE Sensex. Over two and three years, the stock has declined by 27% and 24%, respectively, while the Sensex has risen by 31% and 54% during the same periods.
The company is under pressure as new entrants like Birla Opus (Grasim Industries) are giving huge competition and reducing its market share. According to Elara Securities, Asian Paints' market share dropped from 59% in FY2025 to 52%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
4 minutes ago
- Time of India
Market Wrap: D-Street ends higher on US trade talk optimism; Sensex adds 123 pts, Nifty above 25,100
Indian benchmark equity indices Sensex and Nifty ended in the green on Wednesday, lifted by gains in IT and oil & gas stocks, as positive cues from Asian markets and progress in trade talks between the U.S. and key partners like India and China boosted investor sentiment. The BSE Sensex advanced 123.42 points, or 0.15%, to settle at 82,515.14, while the NSE Nifty eked out a gain of 37.15 points, or 0.15% to close at 25,141.40. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo
Economic Times
5 minutes ago
- Economic Times
Rupee sticks to muted price action, implied volatility retreats
The Indian rupee ended slightly higher on Wednesday, sticking to rangebound price action for a third consecutive session on two-sided client flows and the absence of cues to firm a directional bias on the currency. ADVERTISEMENT The dollar-rupee pair's implied volatility, a gauge of future expectations, has receded on the back of muted moves in the currency. The 1-month gauge eased to about 4.4%, the lowest in over one month. On the day, the rupee closed at 85.51 against the U.S. dollar, up slightly from its close of 85.6025 in the previous session. Asian currencies were largely steady as well while the dollar index was hovering sideways around the 99-handle. Mild dollar sales from foreign banks helped the rupee tick higher in early trading but routine corporate dollar demand stood in the way of the local currency extending its rise, a trader at a state-run bank said. India's benchmark equity indexes, the BSE Sensex and Nifty 50, ended slightly in the green, tracking a rise in regional equities as markets gave a guarded welcome to the latest signs of progress in trade talks between the United States and China. ADVERTISEMENT "The dollar remains one of the best gauges of trade sentiment. While it has held up generally well early this week, it hasn't built on the late-week momentum following the US-China meeting announcement," ING Bank said in a note. Worries about the impact of wide-ranging U.S. tariffs have weighed on the dollar this year and left it nursing losses of more than 8.5% against major peers. ADVERTISEMENT The focus now turns to U.S. consumer price inflation data, due later on Wednesday, which is expected to show month-on-month core consumer prices rose 0.3% in May, according to a Reuters poll, slightly higher than the 0.2% rise in the previous month. (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
5 minutes ago
- Economic Times
Sebi to launch UPI IDs for Sebi-registered entities that collect funds
Synopsis The new ecosystem will enable a secure and transparent payment system for investors to transact with registered intermediaries. Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
