Mukesh Ambani's Reliance Industries made a big move on Thursday. The company sold a 3.64% stake in Asian Paints for Rs 7,703 crore through a block deal. SBI Mutual Fund bought this huge stake, showing strong confidence in the paint company. Asian Paints shares ended the day higher after this massive transaction.
Reliance Industries sold the Asian Paints shares through its company called Siddhant Commercials. The deal happened on Thursday through the National Stock Exchange. Siddhant Commercials sold 3.50 crore shares at an average price of Rs 2,201 per share.
Before this sale, Siddhant Commercials owned 4.90% of Asian Paints. After selling, their stake dropped to just 1.26%. This means Reliance Industries reduced its holding in the paint company by a big margin. The NSE data shows all these transaction details clearly. This was one of the biggest block deals in recent times.
SBI Mutual Fund was the buyer in this deal. Their stake in Asian Paints jumped from 1.51% to 5.15% after this purchase. This is a huge increase for the mutual fund company. This move shows SBI Mutual Fund believes Asian Paints will do well in the future. Asian Paints is India's biggest decorative paint company. The fund house sees good long-term value in owning more shares of this company.
Mutual funds usually buy shares of companies they think will grow. SBI's big purchase signals they are confident about Asian Paints' future business.
Asian Paints shares closed 0.73% higher at Rs 2,225 on the NSE. This positive reaction surprised many people. Usually, when big investors sell shares, the stock price falls. But Asian Paints shares went up instead.
This shows other investors liked the deal. They probably think SBI Mutual Fund's big purchase is a good sign for the company. The market sentiment remained positive throughout the trading day. Investors saw this as a vote of confidence in Asian Paints.
Reliance Industries has been selling stakes in various companies lately. Mukesh Ambani's company wants to focus on its main businesses. Selling non-core investments helps them raise money for other projects.
On the other hand, institutional investors like SBI Mutual Fund are buying stakes in strong companies. They believe companies like Asian Paints will perform well despite market ups and downs.
This trend shows smart money is moving toward quality businesses. Fund houses prefer companies with strong market positions and steady growth.
This transaction is good news for Asian Paints. Having a big mutual fund as a major shareholder brings stability. SBI Mutual Fund will likely hold these shares for a long time.
Asian Paints remains India's top paint company. The company has a strong brand and wide distribution network. These factors make it attractive to long-term investors like mutual funds. The paint industry in India continues to grow as more people buy homes and renovate existing ones.