Reliance Industries Limited (RIL) has completed the acquisition of Sintex Industries Limited (SIL) and has infused Rs 1,500 crore into yarns and fabric maker under the resolution plan.

SIL allotted shares totalling Rs 600 crore and optionally fully convertible debentures of Rs 900 crore to RIL, the company said in a Stock Exchange filing. The 59,92,49,962 equity shares of SIL which were issued prior to the approval of the Resolution Plan have been cancelled; and after such cancellation and post allotment of equity shares of SIL to secured Financial Creditors and Assets Care & Reconstruction Enterprise Limited  (ACRE), in terms of the approved resolution plan, RIL holds 70% equity share capital of SIL. SIL will be jointly controlled and managed by RIL and ACRE.

Earlier on February 14, the National Company Law Tribunal’s Ahmedabad bench had approved the resolution plan submitted by RIL and ACRE to jointly acquire debt-ridden SIL. Following admission to bankruptcy, lenders had admitted claims of Rs 7,500 crore against, while the Rs 3,651-crore plan by RIL-ACRE team was approved.

SIL was incorporated in India on June 1, 1931 and is in the business of manufacturing yarns and fabrics. The turnover of SIL for FY 2022, FY 2021, FY 2020 was Rs. 3,127 crore, Rs. 1,689 crore and Rs. 1,635 crore, respectively. The acquisition of SIL will help expand the textile business portfolio of the company.