Mukesh Ambani-led Reliance Industries is reportedly considering selling its stake in Asian Paints as the Indian multinational conglomerate is stepping up its efforts to become debt free.
According to a Bloomberg report, the company is in discussions with various banks for a potential sale of its 4.9% stake worth ₹989mn in Asian Paints report Ltd. through a series of block trades. Reliance holds the stake in the country’s largest paint manufacturer though one of its subsidiaries, Teesta Retail Pvt Ltd.
Although the sources have provided details about the possible transaction, Reliance has firmly ruled out the possibility of the deal.
The recent developments and investments in the company are on a fast pace as the company looks to turn zero net debt by the end of the year. A decline in oil and gas prices has severely affected and delayed the conglomerate’s plans for turning profitable.
Earlier in April, Reliance had announced that it is planning to raise about ₹531bn through a rights offering. Recently, Mark Zuckerberg’s Facebook bought a 9.9% stake in the company’s Jio. Soon after Facebook, private equity firm Silver Lake Partners also invested about $753mn in the same entity.
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