Asian Paints Shares End In Red After RIL Sells 3.6% Stake To SBI MF; Brent Crude Price Surge Adds Pressure

Asian Paints shares registered a downfall in Friday's trading session following Reliance Industries Ltd (RIL) selling of 3.6% equity stake to SBI Mutual Fund via a block deal on Thursday. Additionally, the stock is also in the spotlight as Brent Crude prices surge over 12% in today's session, raising concerns for the paint industry's input costs.

Asian Paints Share Price

Despite the major transaction, Asian Paints shares ended Friday, June 13, on almost flat note, closing at Rs 2,216.10, down by just Rs 2.80 or 0.13% from the previous day's close of Rs 2,219.40 on the Bombay Stock Exchange (BSE). The stock traded in a range between Rs 2,174.80 - Rs 2,208.00 during the day.

However, in today's session, the stock was under some pressure amid profit booking and broader market cues. "While the SBI Mutual Fund deal supports long-term sentiment, short-term volatility may persist due to external factors," says Gaurav Bissa, Sr. Vice President, InCred Capital.

Reliance Offloads Major Stake in Asian Paints to SBI Mutual Fund

Mukesh Ambani-led Reliance Industries (RIL) sold 3.5 crore shares of Asian Paints, held through its subsidiary Siddhant Commercials Ltd. The sale was executed at Rs 2,201 per share, amounting to a total of Rs 7,704 crore (around $900 million). post-transaction, ril retains 87 lakh shares in the company, according to the exchange filing.

This deal marks one of the largest bilateral block transactions in the Indian stock market, reinforcing SBI Mutual Fund's position as the largest asset manager in India. The fund now holds a 3.6% stake in Asian Paints.

This move has also proved extremely profitable for Reliance. The group had invested in Asian Paints 17 Years Ago, and this sale reflects a nearly 23-fold return, adding a massive windfall to its balance sheet. The monetisation of this long-standing investment aligns with RIL's broader strategy to unlock value from non-core assets.

RIL Share Performance

Reliance Industries was trading under pressure on Friday, 13th June, and ended at Rs 1427.50, down by 14.10 or 0.98% on the Bombay Stock Exchange (BSE), witnessing a slowdown of 1% amid the Israeli strikes over Iran.

Brent Crude Price Surge Raises Cost Concerns for Paint Industry

Adding to the pressure, Brent crude oil prices jumped over 13%, hitting their highest levels in recent months. The spike is largely driven by rising tensions in the Middle East, particularly following Israeli strikes on Iran, which have raised fears of disruptions in oil supplies through key trade routes like the Strait of Hormuz.

This development is particularly relevant to companies like Asian Paints because many of their key raw materials, including solvents and resins, are petroleum-based. A rise in crude prices directly leads to higher input and production costs for paint manufacturers.

Higher manufacturing costs can impact profit margins or result in increased prices for consumers, potentially affecting demand, especially in cost-sensitive market segments like housing and infrastructure.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. Neither the author, nor the brokerage firm, nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.