INVC NEWS Mumbai – The Reliance Industries Limited, led by Mukesh Ambani, is preparing to fully exit its long-standing investment in Asian Paints, bringing an end to a 17-year-old corporate association. The move is aligned with Reliance’s ongoing strategy to shed non-core assets and concentrate on its primary sectors—energy, retail, and digital services.
According to a report by The Economic Times, Reliance is likely to sell its 4.9% stake in Asian Paints through one or more block deals, potentially raising approximately $1.3 billion (around ₹10,700 crore). Bank of America (BoFA) has been appointed to oversee the transaction.
Why Reliance Is Exiting
Reliance initially invested in Asian Paints years ago, but the company is now realigning its portfolio to intensify focus on high-growth verticals. The decision comes at a time when Asian Paints is battling margin pressures and rising competition, making this a strategically opportune moment for Reliance to exit.
What This Means for Both Companies
Massive Capital Influx for Reliance: The expected proceeds of $1.3 billion will enhance Reliance’s liquidity and may be redirected toward expanding its core businesses.
Operational Autonomy for Asian Paints: Reliance’s exit may pave the way for new strategic investors and increase operational flexibility.
Portfolio Optimization: For Reliance, this divestment reinforces its commitment to strengthening footholds in the sectors it dominates.
The Road Ahead
The divestment funds are likely to be deployed across Reliance’s digital transformation and green energy initiatives. Meanwhile, Asian Paints could use this shift to re-engage with institutional investors or boost internal equity.
This high-stakes decision signals a decisive pivot by Reliance to streamline its investments, exit non-strategic holdings, and sharpen its future growth trajectory.
