Reliance Industries sells 3.5 crore shares of Asian Paints at Rs 2,201 apiece.

In a significant market transaction that has caught the attention of investors and analysts alike, Reliance Industries Ltd. (RIL) offloaded 3.5 crore shares of Asian Paints Ltd., one of India’s largest decorative paints companies, in a block deal valued at over ₹7,700 crore. The shares were sold at ₹2,201 apiece, marking a marginal discount to Asian Paints’ previous close on the stock exchange.

This move by India’s most valuable company has prompted discussions about the conglomerate’s evolving capital allocation strategy and the broader implications for the paints industry and retail investors.

Details of the Deal

According to data available from the block deal window on the BSE and NSE, the sale was executed on the morning of June 12, through multiple bulk transactions. The total value of the transaction stood at ₹7,703.5 crore.

While the identity of the buyers remains undisclosed at the time of reporting, market participants speculate that the shares were picked up by a mix of domestic institutional investors and foreign portfolio investors (FPIs), who have remained bullish on the Indian consumption story.

Notably, this deal brings Reliance’s stake in Asian Paints down to negligible levels, effectively signaling an exit from the paints major, which has been a consistent outperformer in the FMCG-adjacent space.

Market Context: Timing and Trends

Asian Paints’ shares have been relatively rangebound over the past quarter, trading between ₹2,050 and ₹2,300. The broader paints sector has seen increased competition in recent months with the entry of Grasim Industries’ Birla Opus brand, pushing incumbents like Asian Paints to ramp up innovation and distribution investments.

Reliance’s exit comes at a time when the conglomerate is doubling down on its own consumer-facing ventures, including its aggressive foray into the paints market through Reliance Retail Ventures Ltd., which had earlier announced plans to launch decorative paints under a new label.

“This move seems more strategic than opportunistic. With Reliance entering the same sector, continuing to hold a stake in the incumbent market leader may have posed a conflict of interest,” said Ravi Menon, Head of Research at Centrum Broking.

Analyst Reactions: Strategic Shift?

Market analysts believe the offloading could be a part of a larger portfolio rebalancing exercise as Reliance Industries seeks to streamline its investments to align with its consumer and new energy growth verticals.

“Reliance has been reshaping its business model — from energy and telecom to retail, digital services, and now paints. Exiting Asian Paints might help clear the decks for Reliance’s upcoming launch and avoid any regulatory or perception-related hurdles,” said Amrita Shah, Equity Strategist at Edelweiss Wealth.

However, not everyone is reading the move as purely strategic. Some experts believe that the sale may also reflect a valuation call, especially as Asian Paints trades at a historically high P/E multiple of over 60x, despite margin pressures in the near term.

Stock Movement and Market Sentiment

Following the block deal announcement, shares of Asian Paints fell over 3% in intraday trade, closing at ₹2,180. Meanwhile, Reliance shares remained stable, signaling that the deal was largely anticipated or priced in by the market.

Investor sentiment remained cautious but not overtly negative. “The fundamentals of Asian Paints remain strong. A promoter group exit — even if it’s Reliance — does not change the company’s long-term trajectory,” said Nirav Vora, Fund Manager at Quant Mutual Fund, which holds a stake in Asian Paints.

Investor Outlook: What’s Next?

For Asian Paints, the road ahead involves navigating increasing competition, especially from deep-pocketed new entrants like Reliance and Grasim. The company’s recent announcements on capacity expansion and digital innovation suggest it’s bracing for an evolving landscape.

For Reliance, this divestment is likely to fuel additional capital deployment into its own paints brand launch, which could be unveiled as early as the second half of FY26, according to sources close to the development.

Retail and institutional investors may see this move as a realignment of strategies rather than a signal to exit. “We’re holding onto our Asian Paints position. The company's return on equity (RoE), brand loyalty, and pricing power are unmatched,” said Vora.

Reliance Industries’ exit from Asian Paints is more than just a financial transaction — it’s a window into the conglomerate’s evolving ambitions. As Reliance shifts gears toward building its consumer brand in paints, this move clears the slate for unambiguous competition. For Asian Paints, the challenge is now not just to maintain market share, but to innovate in an increasingly crowded space.