Reliance Industries Ltd (RIL) is reportedly looking to sell its 4.9 per cent stake in Asian Paints Ltd., which is currently valued at about $989 million. Separately, Welspun Enterprises Ltd is acquiring a toll road project from Essel Group.
RIL plans to sell 4.9% stake in Asian Paints
Mukesh Ambani-led Reliance Industries Ltd (RIL) is looking to sell its 4.9 per cent stake in India’s largest paint maker Asian Paints Ltd., which is currently valued at about $989 million, Bloomberg reported.
The Indian conglomerate, which holds stake in Asian Paints through Teesta Retail Pvt Ltd., is in talks with banks to execute the sale through a series of block trades as it looks to pare debt, the report said. RIL in a statement, however, has denied the development.
On April 30, RIL announced its mega plan to raise about 531 billion rupees in a rights offer. The decision came days after Facebook Inc. said it would pay $5.7 billion to buy a 10% stake in Jio Platforms, Reliance’s digital arm. Private equity firms Silver Lake and Vista Equity Partners are also investing $750 million and $1.5 billion, respectively, in Jio Platforms.
Last week, Reliance reported a 39% slump in March quarter profit, hit by a sharp fall in oil prices and lower fuel demand.
Welspun to acquire toll road project from Essel
Welspun Enterprises Ltd, part of the $2.7 billion Welspun Group, Thursday said that it plans to acquire a build-operate-transfer (BOT) toll project from Essel Group’s company Mukarba Chowk – Panipat Toll Roads Limited (MCPTRL).
Welspun said, it is routing the acquisition through its subsidiary, Welspun Infrafacility Private Limited, by way of harmonious substitution, which was recommended by the project lenders and subsequently approved by NHAI.
MCPTRL has so far completed 31% of the 71.1-kilometer-long Mukarba Chowk-Panipat Highway (NH-44) project. The original total project cost was estimated to be Rs2,122 crore out of which Rs 1,593 crore is the balance to be incurred, to complete the project.
All existing lenders to the project have agreed to continue financing it, Welspun said, adding that it expects to complete the project by June 2021.