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.
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.