Asian Paints shrug off CCI probe; hits 2-month high, rallies 5% in 3 days

Since June 11, the stock price of Asian Paints has appreciated by 12% after Reliance, through its subsidiary Siddhant Commercials, sold 35 million equity shares to SBI Mutual Fund.

Asian Paints share price

 

Shares of Asian Paints hit a two-month high of ₹2,464, up 2 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes. The stock price of the paint company has bounced back nearly 5 per cent from Wednesday’s low, shrugging-off the Competition Commission of India (CCI) probe.

 

Asian Paints was trading higher for the third straight day, gaining 5.3 per cent during the period. It quoted at its highest level since May 5, 2025.

 

Since June 11, the stock price of Asian Paints has appreciated by 12 per cent after Reliance Industries Limited (RIL), through its subsidiary Siddhant Commercials Limited, sold 35 million equity shares of the company at ₹2,201 per share. The total deal is valued at approximately ₹7,703.5 crore. Post-sale, RIL continues to hold 8.7 million equity shares in Asian Paints.

 

 

SBI Mutual Fund buys 35 million shares of Asian Paints

 

SBI Mutual Fund under its various schemes has acquired 35 million equity shares representing 3.65 per cent stake of Asian Paints on June 12, 2025, resulting in acquisition of above 5 per cent of the company. 

 

The final holding of SBI Mutual Fund, under its various schemes, at close of business hours on June 12, 2025 was 51.36 million shares, which is 5.35 per cent of paid-up share capital of Asian Paints, the company said in an exchange filing.

 

Asian Paints may face CCI probe for alleged market dominance abuse

 

The Competition Commission of India (CCI) has ordered its director general (DG) to investigate allegations of misuse of market dominance by market leader Asian Paints in the domestic market.  This investigation has been ordered following a complaint raised by Grasim Industries, a new entrant into the paint market through Birla Opus Paints, accusing Asian Paints of putting restrictive clauses with its distributors discouraging them from selling products of Birla Paints.

 

CCI has prima facie found that Asian Paints has violated India’s anti-trust laws and has ordered thorough investigation against the complaint.

 

However, Asian Paints in an exchange filing said the company is currently reviewing the Order and will take appropriate legal recourse. The company remains committed to fully cooperating with the CCI during the course of the investigation. CLICK HERE FOR MORE DETAILS

 

ICICI Securities views on Asian Paints

 

DG CCI will complete the probe in 90 days and submit the report. If the final report suggests that Asian Paints has violated the market practices, they will get penalised for the same and will have a bad impact on the brand, according to ICICI Securities.

 

Asian Paints has a leadership position with 50 per cent+ market share while Birla Opus has gained 7 per cent market share within a short span of two years. Though the final verdict is yet to be out, CCI preliminary findings indicate wrong doings by Asian Paints, which will not go well with the street, the brokerage firm said in a note.

 

JM Financial Institutional Securities views on paint sector

 

The brokerage firm likes Asian Paints' brand equity & supply chain strengths; however, over the past 2 years these moats have been challenged (visible from underperformance on sales growth vs peers/industry). While initial signs of normalisation of competitive activity (likely stabilization in sales run-rate of Birla Opus) & JSW Paints intent to scale up in sustainable manner is positive; however, it is too early to call out stabilization in industry structure. 

 

Premium segment, which is stronghold of Asian Paints, could see increased activity from new players (Birla Opus, increased focus on Dulux by JSW Paints-Akzo) as well as existing incumbents (Berger Paints) who are strengthening their position in urban markets. Hence, while valuations are below long term averages for Asian paints, the industry construct & earnings profile/visibility has also changed. The brokerage firm maintains its cautious view on the sector & would await more concrete signs on revenue recovery before changing its stance on Asian Paints.