Mukesh Ambani’s Masterstroke, earned 9000 crores from Asian Paints by investing 500 crores

Mukesh Ambani, the country’s richest industrialist, has taken exit from an investment, which will be counted in India’s corporate world’s most strong long -term bets. In 2008, he has earned Rs 9,080 crore from the shares of Asian Paints purchased in 2008, that is, a return of about 2,200 percent.

How did this miraculous deal happen?

Reliance Industries (RIL) recently sold its remaining stake in Asian Paints, ie 87 lakh shares, on an average, Rs 2,207.65 per share to ICICI Prudential Life Mutual Fund. With this, the company got Rs 1,876 crore.

Earlier, RIL sold 3.5 crore shares last week, SBI Mutual Fund for Rs 7,704 crore at a price of Rs 2,201 per share. That is, overall Reliance has sold the entire stake by earning Rs 9,580 crore from Asian Paints.

Timing was amazing

The time of exit turns out to be perfect, as Asian Paints is currently going through its most difficult phase. In the last two years, its shares have lost more than 30 percent. And the market share has fallen from 59 percent to 52 percent. The reason behind this is the new entry of Aditya Birla Group, Birla Opus Paints.

At the same time, revenue growth has also been cold since four quarters and margins are also under pressure, despite cheap raw materials, the profit margin has decreased due to more discounts and increasing competition.

RIL’s strategic thinking gets the trust of investors

Mukesh Ambani has made it clear from the Asian Paints that now his eyes are on New Energy and AI Infrastructure. Morgan Stanley’s analysts believe that RIL is now in his fourth montage phase. In the next three years, the company will spend an average of $ 15 billion every year, but its cash flow will fully support it. The company’s rating is expected to be better by 2027, as now its return on Capital Employees can go above 9 per cent.

This ‘opposite thinking’ won in 2008

When the whole world was struggling with economic recession in 2008 and veteran companies like Lehman Brothers were collapsing, Ambani showed the opposite thinking and bought a 4.9 per cent stake of Asian Paints for Rs 500 crore. And now after 17 years, the same bet gave the benefit of more than Rs 9,000 crore.

5 years ago, when Reliance was lending debt from his balance sheet and bringing the rights issue, he did not sell the Asian Paints. Instead raised $ 25 billion in digital, retail and telecom and that too with global investors.

Asian Paints still strong in market

Even though the company is surrounded by difficulties at this time, it still runs India’s largest paint distribution network with more than 74,000 dealers and is present in more than 60 countries.

However, brokerage firms are now a little cautious. Nuwama has cut the earnings of up to 6-8 per cent for FY26 and FY27 and EPS growth estimates only 7.2 per cent. The target price has been reduced to Rs 2,200 and the rating has also been kept ‘neutral’.

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