Reliance Sells 3.6% in Asian Paints to SBI MF for $900 Mn

In one of the biggest block deals in recent times, Reliance Industries has sold 3.6% of its stake in Asian Paints to SBI Mutual Fund for around ₹7,703 crore (about $900 million). This deal was done through its group company, Siddhant Commercials Pvt Ltd, which sold 3.5 crore shares at ₹2,201 per share in the open market.

The entire stake was picked up by SBI Mutual Fund, making this a rare and bold single-seller, single-buyer deal on such a large scale.

Reliance originally bought this stake in 2008 for just around ₹500 crore. By selling it now for ₹7,700+ crore, the group has made more than 15x returns over 17 years. But the main question was why exit now?

Reliance is focused on its core businesses—like telecom, digital, retail, and green energy. Selling older investments like this one gives them fresh capital to invest in faster-growing areas. Also, they timed the market well, closing the deal at nearly market price without offering big discounts.

On the other side of this deal, SBI Mutual Fund made a bold move by buying the entire block. It has now become one of the larger institutional shareholders in Asian Paints.

This shows that SBI Mutual Fund believes in the long-term growth potential of Asian Paints, even though the paint sector is facing some short-term challenges.

Even strong companies like Asian Paints are feeling some heat right now:

Despite these challenges, Asian Paints is still the market leader and has a strong brand presence.

The news created some buzz, but investors didn’t panic. The stock stayed mostly stable. Since the deal was between two big and trusted names—Reliance and SBI MF—it brought confidence to the market, not fear.

Also, the fact that SBI Mutual Fund stepped in as a buyer shows trust in the company’s future.

Asian Paints may be under some heat now, but strong fundamentals, brand loyalty, and a history of market dominance make it a company to watch, especially when big players are still betting on its future.

Why Did Reliance Sell?

SBI Mutual Fund’s Big Move

What’s Happening in the Paint Industry?

How Did the Market React?

• Crude oil prices have jumped—this disturbs margins because paint ingredients come from oil.
• Competition is rising. New players like JSW Paints and Birla Opus are slowly eating into Asian Paints’ market share.
• Sales growth has slowed down. The decorative paint business saw just 2.5% volume growth in FY25—its slowest in two decades.

• Reliance is staying sharp with its capital allocation. By exiting a mature investment at a great return, it can now double down on future-focused businesses like green energy and digital infrastructure.
• SBI Mutual Fund is making a confident long-term bet on Asian Paints, even when the sector is facing pressure. That speaks volumes about the brand’s resilience and market leadership..