Reliance Industries emerges successful bidder for textile company Sintex Industries

Reliance Industries Ltd (RIL) successfully bids for another company undergoing corporate insolvency resolution process (CIRP). This time it is listed company Sintex Industries, which informed the exchanges that the Committee of Creditors has approved with 100% vote the resolution plan submitted by RIL jointly with Assets Care & Reconstruction Enterprise Limited.

The successful resolution plan is subject to approval of NCLT Ahmedabad. The Interim Resolution Professional is in the process of filing an application in accordance with Section 30(6) of the Code for approval of the said Resolution Plan, informed the company in an exchange filing.

As per the resolution plan of Reliance Industries Limited jointly with Assets Care & Reconstruction Enterprise Limited, it is proposed that existing share capital of the Company will be reduced to Zero and the company will be delisted from the stock exchanges — BSE and NSE.

Reliance Industries has earlier successfully bid for Alok Industries along with JM Financial Asset Reconstruction Company Ltd for Rs 5,052 crore. RIL’s group company Reliance Jio has also acquired Anil Ambani’s Reliance Infratel Ltd through its associate company Reliance Digital Platform & Project Services Limited for a sum of Rs 3,720 crore.

Apart from Reliance Industries jointly with Assets Care & Reconstruction Enterprise, three more bidders had bid for Sintex Industries.  They were Easygo Textiles Private Limited (WELSPUN Group), GHCL Limited and Himatsingka Ventures Private Limited, and Shrikant Himatsingka and Dinesh Kumar Himatsingka.

The insolvency proceeding against Ahmedabad-based Sintex Industries was initiated by Invesco Asset Management (India) Private Ltd,  after the former defaulted on a payment on Rs 15.40 crore on the due date.

The Ahmedabad bench of the National Company Law Tribunal through an order on 6 April 2021 admitted insolvency application of Invesco Mutual Fund after the tribunal found that all the documents furnished by the financial creditor (Invesco Mutual Fund) established the debt and default on part of Sintex Industries.

Sintex Industries is an eight-decade old company which is into manufacturing of textiles and yarns. It is listed on both National Stock Exchange and Bombay Stock Exchange.

Also Read: RIL, Welspun Group among four to bid for Sintex Industries