Mukesh Ambani-helmed Reliance Industries (RIL) has completed the acquisition of Sintex Industries (SIL) and has infused ₹1,500 crore into yarns and fabric maker under the resolution plan.
On Tuesday, SIL allotted shares totalling ₹600 crore and optionally fully convertible debentures of ₹900 crore to RIL. About 60 crore shares, which were issued before the approval of the resolution plan, were cancelled, RIL said in a regulatory update.
Following the acquisition, RIL will hold a 70% stake in Sintex Industries and the company will be jointly managed by RIL and Assets Care & Reconstruction Enterprise (ACRE), it said, adding, the acquisition help in expanding its textile business portfolio.
Earlier on February 14, the National Company Law Tribunal’s Ahmedabad bench had approved the resolution plan submitted by RIL and ACRE to jointly acquire debt-ridden SIL. Following admission to bankruptcy, lenders had admitted claims of ₹7,500 crore against, while the ₹3,651-crore plan by RIL-ACRE team was approved.
SIL had received bids from Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures along with Shrikant Himatsingka and Dinesh Kumar Himatsingka. The company had posted a turnover of ₹3,127 crore in FY22, ₹1,689 crore in FY21 and ₹1,635 crore in FY20.
This is RIL’s third acquisition through the insolvency and bankruptcy process. In 2020, it acquired Alok Industries, another distressed textile company, in association with JM Financial Asset Reconstruction Co. In December 2022, Reliance Jio Infocomm completed the Rs 3,720-crore acquisition of Reliance Communications’ tower and fibre assets.