Reliance Industries Limited completes acquisition of Sintex Textile
Dependent industry Limited has completed the acquisition of Sintex Textiles for Rs 3,567 crore. Mukesh Ambani’s business completed the transaction a month after the National Companies Law Court approved it and a year after the respective banks approved the deal.
“Both operating and financial creditors including banks received the funds on Tuesday,” a source close to the development told the ET Bureau. “For public sector banks, this is a big relief right before the end of the financial year as the account is already fully provisioned and will lead to a full refund, which will directly improve profitability.”
As part of the transaction, Punjab National Bank received Rs 700 crore and Baroda Bank received Rs 533 crore, the Economic Times reported. The third largest creditor of the bankrupt Sintex Industries, Exim Bank of India, will receive Rs 389 crore from the resolution.
Reliance Industries Limited has bid to acquire Sintex Textiles through bankruptcy. It also acquired bankrupt textile business Alok Industries in 2020 in partnership with JM Financial Asset Reconstruction.
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