Reliance Industries, led by Mukesh Ambani, is reportedly selling its entire 4.9% stake in Asian Paints after holding it for 17 years. According to reports, RIL intends to divest from Asian Paints, a leading paint company. The decision was made by Asian Paints in response to margin pressures and intense competition from new industry players.

RIL has hired Bank of America (BoFA) to handle the transaction, which could occur in one or more block deals. According to media reports, offers for the stake are being made at a 6.7 percent discount to Asian Paints' current market price. The report claims that brokers and investment banks are looking for buyers for the stake.

At the current closing price of Rs 2,323 per share, Reliance Industries' 4.9% stake is worth Rs 11,141 crore ($1.31 billion). Reliance originally invested Rs 500 crore in Asian Paints in January 2008. When dividends are taken into account over the years, the investment has now returned approximately 24 times its initial investment.

However, Asian Paints' performance has lagged that of broader market indices in recent years. Its shares fell 19% last year, while the BSE Sensex rose 11.5%. Over the last two and three years, the stock has declined by 27% and 24%, respectively, while the Sensex has increased by 31% and 54%.

Due to fierce competition and a decline in market share from new competitors like Birla Opus (Grasim Industries), the company is under pressure. Elara Securities reports that Asian Paints' market share is now 52%, down from 59% in FY2025.