Asian Paints Share Price Hits 2-Month High, Rises 5% in 3 Days Despite CCI Probe

On Thursday, July 3, 2025, Asian Paints share price hit a two-month high of ₹2,464 on the BSE, rising 2% during intraday trade with heavy volumes. The stock rebounded almost 5% from Wednesday’s low, ignoring concerns about a Competition Commission of India (CCI) investigation.

Asian Paints has now logged gains for 3 straight trading sessions, going up 5.3% during this period and reaching its highest price since May 5, 2025.

Asian Paints Rally 12% After Reliance Sale

Since June 11, Asian Paints share price has surged 12%. This rally began after Reliance Industries Limited (RIL), through its subsidiary Siddhant Commercials Limited, sold 35 million shares of Asian Paints to SBI Mutual Fund. The shares were sold at ₹2,201 apiece, and the total deal was valued at about ₹7,703.5 crore. Even after this big sale, RIL continues to hold 8.7 million equity shares of the company.

SBI Mutual Fund Buys 3.65% Stake

SBI Mutual Fund purchased these 35 million shares under its various schemes on June 12, 2025. After the purchase, SBI Mutual Fund’s total holding in Asian Paints rose to 51.36 million shares, or 5.35% of the company’s paid-up share capital. The company disclosed this information in an exchange filing.

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CCI Orders Investigation into Alleged Market Abuse

Despite the strong rally, Asian Paints is facing regulatory trouble. The Competition Commission of India has directed its Director General (DG) to investigate allegations that Asian Paints abused its dominant position in the market.

This action was taken after Grasim Industries, which recently entered the paints market through Birla Opus Paints, filed a complaint. Grasim alleged that Asian Paints imposed restrictive clauses on distributors to prevent them from selling Birla Opus products.

According to the CCI, there is initial evidence that Asian Paints violated India’s anti-trust laws. The regulator has called for a full probe into the complaint.

Asian Paints responded in an exchange filing that it is reviewing the order and will take appropriate legal steps if necessary. The company also said it remains committed to cooperating fully with the CCI throughout the investigation.

Conclusion

Asian Paints has delivered a sharp stock rebound over the past month, driven by large institutional buying and positive investor sentiment. However, the CCI probe into alleged abuse of market dominance could become a serious overhang if it results in penalties or reputational damage. Investors should monitor the investigation’s progress and the evolving competitive pressures in the paints industry before making long-term commitments.

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