By: ICN Bureau
Last updated : March 02, 2020 8:59 pm
Reliance had jointly with JM Financial Asset Reconstruction Co Ltd bid for acquiring Alok Industries that was auctioned under the insolvency and bankruptcy law by lenders to recover their unpaid loans
Reliance Industries has acquired 37.7 per cent stake in textile manufacturer Alok Industries Ltd for Rs 250 crore.
Reliance had jointly with JM Financial Asset Reconstruction Co Ltd bid for acquiring Alok Industries that was auctioned under the insolvency and bankruptcy law by lenders to recover their unpaid loans.
The Ahmedabad bench of the National Company Law Tribunal (NCLT) had last year approved the joint bid.
"Please note that in accordance with the approved Resolution Plan, ALOK has today allotted 83.33 crore equity shares of Re 1 each at a premium of Rs 2 per equity share for cash at total consideration of Rs 250 crore to RIL," Reliance Industries Ltd (RIL) said in a regulatory filing.
Pursuant to this acquisition, RIL will hold 37.7 per cent equity share capital of Alok Industries, it added.
Also, in accordance with the approved resolution plan, Alok Industries has allotted 250 crore 9 per cent Optionally Convertible Preference Shares (OCPS) of Re 1 each for cash at par, for a total consideration of Rs 250 crore to RIL.
Alok Industries, incorporated on March 12, 1986, is an integrated textile manufacturer headquartered in Mumbai with interests in the polyester and cotton segments.