Reliance Industries completes acquisition of Sintex Textiles

29 Mar 2023 , 03:05 AM

Reliance Industries has successfully concluded its acquisition of textile firm Sintex Industries for Rs 3,567 crore, exactly one year after receiving approval from banks and a month after the National Company Law Tribunal (NCLT) approved the deal.

As per two sources familiar with the matter, the funds were transferred and allocated to banks in the late evening of Tuesday, thereby concluding the resolution of the ailing company.

In this resolution, the primary creditor Punjab National Bank (PNB) received a sum of Rs 700 crore, while Bank of Baroda (BoB) received Rs 533 crore as the second largest lender. The third largest creditor, Exim Bank of India, is set to benefit from this transaction by gaining a sum of Rs 389 crore.

Reliance and Assets Care & Reconstruction Enterprise (ACRE) bid jointly for Sintex. On March 20, it received approval from Sintex’s Committee of Creditors (CoC) to acquire the debt-ridden textiles firm after more than 97% of the lenders voted in favour of the plan.

At around 3.00 PM, Reliance Industries was trading 0.59% lower at Rs 2,234.80 apiece, against the previous close of Rs 2,248 on NSE. The counter touched an intraday high and low of Rs 2,244.80 and Rs 2,211.10 respectively.

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