New Delhi: Reliance Industries on Saturday said it has acquired a 37.7 percent stake in textile manufacturer Alok Industries Limited under the Insolvency Code. The deal was done for Rs 250 crore.
Reliance had bid jointly with JM Financial Asset Reconstruction Company Limited for the acquisition of Alok Industries. Alok Industries was auctioned under the Insolvency Act to recover the debts of the lenders. The Ahmedabad bid of the National Company Law Tribunal (NCLT) approved the joint bid last year.
Reliance Industries Limited told the stock market, “As per the accepted proposal, Alok Industries today allocated 83.33 crore equity shares worth one rupee to RIL at a rate of two rupees per share, for which a total of Rs 250 crore was paid. Gone.”
RIL said that after the acquisition, it will own 37.7 percent equity shares of Alok Industries. In March 2019, the Ahmedabad Bench of the National Company Law Tribunal (NCLT) approved a plan of Rs 5050 crore received from the only RIL-JMA Financial ARC (Debt / Wealth Restructuring Company) to settle the debt on Alok Industries. For this, Rs 4550 crore was to be raised through debt and Rs 500 crore was to be invested as share capital.
