Mukesh Ambani's Reliance Makes Over 1,440% Return from Asian Paints Stake Sale

Reliance Industries (RIL), the Mukesh Ambani-led oil-to-telecom conglomerate, has made a multibagger return by selling 3.5 crore shares of Indian paint giant Asian Paints on Wednesday. In a stock exchange filing, the company announced the block deal, which, at current prices, would be worth ₹7,703.5 crore.

"Please note that 3.50 crore equity shares of Asian Paints held by Reliance Industries Limited through Siddhant Commercials Limited have been sold today at a price of ₹2,201 per share, leaving a balance of 87 lakh equity shares of Asian Paints," RIL stated in a regulatory filing.

Asian Paints shares rose as much as 2% during the trading session, but later settled just 0.43% higher at ₹2,218.05 per share on the BSE.

Back in January 2008, amid the global financial crisis and the collapse of Lehman Brothers, Reliance Industries had acquired a 4.9% stake in Asian Paints through its subsidiary for just ₹500 crore.

Seventeen years later, that investment has yielded significant gains. With the sale of 3.5 crore shares for ₹7,703.5 crore, Reliance has earned an impressive 14.4x return—or a gain of approximately 1,440% on its original investment.

Stake Sale Amid Asian Paints Losing Shine

Reliance's stake sale comes at a time when Asian Paints is facing intense competition, particularly with the entry of Birla Opus into the decorative paint market in India. According to a report by Elara Securities, Asian Paints’ market share has declined from 59% to 52% in FY25.

"Market share is expected to come under further pressure unless the competition eases meaningfully. Q4 performance was impacted due to lower EBITDA margins and impairment of investments," the brokerage noted on May 9.

Asian Paints reported a 4.3% year-on-year decline in Q4 net sales, bringing in ₹8,360 crore—slightly better than expected. In its core decorative paints segment, volumes grew 1.8%, but overall value dropped 5.2% due to weak demand, heightened competition, and consumers opting for more affordable products.

For the full year (FY25), sales volumes rose just 2.5%, while value declined by 5.7%. In Q4, urban markets saw slower growth, although rural demand remained stable. The B2B segment performed well, driven by demand from factories, builders, and government projects. New product launches contributed 14% to Q4 sales.

The industrial paints segment posted 6.1% year-on-year growth, supported by demand in the general and automotive sectors. However, the home décor category struggled due to multiple challenges. International sales rose 6% (in constant currency), led by strong performance in the Middle East and Asia, though operations in Africa were affected by economic headwinds.