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BENGALURU - Shares of Reliance Industries fell 4.2% in early trading on Monday as India's largest firm decided to halt a stake sale in its oil-to-chemicals business (O2C) to Saudi Arabia's Aramco and pulled back from a potential spinoff of its most profitable unit.

Over the last two years, the Indian conglomerate owned by billionaire Mukesh Ambani has been in the process of selling a 20% stake in the oil business for roughly $15 billion to Aramco and making it a separate unit, while also revamping it in a push towards renewable energy.

The company has remained net-debt free since June last year. Analysts at Jefferies said the deal cancellation has no bearing on Reliance's balance sheet but comes as a disappointment as it loses a chance to set a benchmark of $75 billion valuation for the O2C business.

Reliance had recently inducted Aramco Chairman Yasir Al-Rumayyan into its board amid opposition by California State Teachers' Retirement Fund. Al-Rumayyan's appointment, initially seen as part of a process to formalise the stake sale, was later said to have no connection to the deal.