Reliance Industries Considers Sale Of $989-million Asian Paints Stake

Reliance Industries is considering selling its stake in India’s largest paint maker valued at about $989 million as the conglomerate steps up efforts to trim its debt, said people familiar with the matter.

The company controlled by Mukesh Ambani, is in discussions with banks for a potential sale of its 4.9 per cent stake in Asian Paints through a series of block trades, the people said, asking not to be identified as the information is not public. Reliance holds the stake through Teesta Retail.

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The size and timing of any potential sale haven’t been finalised, and Reliance could decide not to proceed with a deal, the people said. A spokesman for Reliance declined to comment when contacted prior to publication. Later on Thursday, the company said in a statement they “firmly deny this development,” without elaborating.

A stake sale would be the latest in a string of fundraising plans unveiled by Reliance in order to bolster investor confidence, even as the crash in oil prices pulled down profit at the company’s oil-to-chemicals business.

Last month, Reliance said that the group’s net debt would be slashed to zero ahead of its previous target of early 2021.