Reliance Industries is one company which has been continuously in the news over the last couple of weeks. Heavily in debt, the company isn’t going to give up soon and it wasn’t too long ago when one of its subsidiaries Jio Platforms sold a 9.99% stake to Facebook, in what became the world’s largest business deal in terms of value for just a minority stake. Read about it here.
Every Reliance stock in the share market nearly doubled or did better in terms of face value and all those holding stocks liek Reliance Industries, Reliance Power, Reliance Capital, Reliance Communication would’ve had the chance to book heavy profits. Stepping up its efforts to trim its debts, RIL is now set to make another massive sale.
They hold a share in India’s largest paints maker, Asian Paints, which they’re planning on selling and if we’ve heard right, the deal for this 4.9% stake is going to be valued at a whopping $989 million (~INR 74.9 billion) which gives you an idea of how big both brands really are. Controlled by Mukesh Ambani, RIL is in talks with banks for the potential sale which will happen in a series of blocks.
Asian Paints shares closed at approximately 1% lower on Thursday and as the weekend approaches, we could see a further drop on Friday, 8th May. This stake sale would be one of a series of steps RIL is taking to reduce debt and boost stakeholder confidence in the company. While a date hasn’t been set or finalized for the sale, it’s likely to be soon.
The company had initially planned to reach the 0-debt mark by early 2021 but newer projections show that they could reach there much quicker. So, if you don’t own a bit of Reliance stocks as yet, look for a good pricing and get into the action. After Facebook buying a stake in the company, a similar stake was also sold to Silver Lake soon later.
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