Reliance Industries rose 1.82% to Rs 2420.65 after the Ahmedabad Bench of the National Company Law Tribunal has approved the resolution plan jointly submitted by RIL and Assets Care & Reconstruction Enterprise for the resolution of Sintex Industries.
In a regulatory filing made after trading hours yesterday, the conglomerate said that the National Company Law Tribunal, Ahmedabad Bench, has approved the resolution plan jointly submitted by Reliance Industries (RIL) and Assets Care & Reconstruction Enterprise (ACRE) for the resolution of Sintex Industries under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code 2016.
"Certain transactions relating to implementation of Resolution Plan will be subject to obtaining necessary regulatory approvals, RIL said in a statement.
In an exchange filing made yesterday, Sintex Industries said that the NCLT has orally pronounced an order on Friday (10 February 2023) approving the resolution plan submitted jointly by RIL and ACRE.
It further informed that the approved Reliance-ACRE plan contains the reduction of share capital and delisting of equity shares with nil value.
As per media reports, RIL-ACRE had offered about Rs 3,650 crore. The lenders of Sintex Industries had reportedly voted in favour of the joint bid of RIL & ACRE, following which the resolution professional of the company in March last year moved the NCLT for its final approval. Sintex Industries had also received bids from Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures along with Shrikant Himatsingka and Dinesh Kumar Himatsingka, the reports added.
Insolvency proceedings against Sintex Industries were initiated in April last year. Claims of about Rs 7,500 crore were admitted against the company, media reports stated.
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Sintex Industries manufactures and processes high-end structured dyed yarn fabric and cotton yarn.
"Currently, the Corporate Debtor (Sintex Industries) is operating at less than its optimal capacity. With RIL's relevant experience across textile value chain and ACRE's domain knowledge in resolution of stressed assets, they will bring efficiencies through gap identification an process controls and strengthen the management of the Corporate Debtor, Sintex Industries said in a statement.
Reliance Industries (RIL) is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewables (solar and hydrogen), retail and digital services.
On a consolidated basis, net profit of RIL declined 2.8% to Rs 15,792 crore on 17.4% increase in net sales to Rs 2,17,164 crore in Q3 December 2022 over Q3 December 2021.
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