Reliance Industries Limited (RIL) plans to sell its entire 4.9 per cent stake in Asian Paints, according to a report by The Economic Times citing sources. For this purpose, RIL has engaged Bank of America to manage the transaction.

This marks a potential exit from a 17-year-old investment. RIL acquired its stake in 2008 for about Rs 5 billion. The paints sector has been under pressure due to margin challenges and rising competition. Notably, RIL had earlier considered a stake sale in 2020.

Asian Paints shares were trading down 1.62 per cent at Rs 2,287.50 at 11:50 am on the day of the report.

Recently, Asian Paints reported a 45 per cent decline in net profit year-on-year for the fourth quarter of FY25, posting Rs 6.92 billion. The consolidated revenue was Rs 83.59 billion. The results included an exceptional item of Rs 1.8296 billion related to losses on the divestment of Indonesian subsidiaries and impairments on acquisitions in software and paint sectors.

Managing Director and CEO Amit Syngle noted that weak demand conditions continued to impact the paint industry in the last quarter.

Source:Financial Express