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Reliance Completes Acquisition of Sintex Industries

Under the resolution plan, RIL injected Rs 1,500 crore into Sintex Industries.

Mukesh Ambani-led Reliance Industries (RIL) has completed the acquisition of Sintex Industries (SIL) and injected Rs 1,500 crore into the yarn and fabric maker under a resolution plan.

On Tuesday, SIL allotted Rs 600 crore in shares and Rs 900 crore in optional fully convertible bonds to RIL. In a regulatory update, RIL said about 60 crore shares were issued before the resolution plan approval had been cancelled.

After the acquisition, RIL will hold a 70% stake in Sintex Industries. RIL and Assets Care & Reconstruction Enterprise (ACRE) will jointly manage the company, adding acquisitions to help expand its textile business portfolio.

Earlier on February 14, the National Company Law Tribunal’s Ahmedabad judge had approved the resolution plan filed by RIL and ACRE for the joint acquisition of indebted SIL. After declaring bankruptcy, lenders admitted Rs 7,500 crore claims, while a Rs 3,651 crore scheme proposed by the RIL-ACRE team was approved.

SIL received bids from Welspun Group company Easygo Textiles, GHCL and Himatsingka Ventures, Shrikant Himatsingka and Dinesh Kumar Himatsingka. The company posted a turnover of Rs 3,127 crore in FY22, Rs 1,689 crore in FY21 and Rs 1,635 crore in FY20.

This is the third acquisition by RIL through insolvency and bankruptcy proceedings. In 2020, it acquired another struggling textile company, Alok Industries, 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.

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