Reliance Industries Ltd. 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 a report by Bloomberg.
RIL is in discussions with banks for a potential sale of its 4.9% stake in Asian Paints Ltd. through a series of block trades, according to the report. Reliance holds the stake through Teesta Retail.
“The size and timing of any potential sale haven’t been finalized, and Reliance could decide not to pro-ceed with a deal, the people said,” the report added.
The sale of stake in Asian Paints is part of RIL’s string of fundraising plans unveiled 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.
Asian Paints is India’s largest paints & coatings manufaturer by revenue. The company operates in 15 countries with 26 paint manufacturing facilities globally.
On report of RIL stake sale, the stock of Asian Paints has underperformed the market by falling 15%, as compared to a 0.55% rise in the S&P BSE Sensex.