Reliance Industries, Welspun among bidders to acquire Sintex Industries

The debt-ridden Sintex Industries was put under the Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code, 2016.

Reliance Industries Limited jointly with Assets Care & Reconstruction Enterprise Limited is among the four bidders who have submitted Resolution Plans for the bankrupt textile and yarn maker Sintex Industries Limited. The other bidders in the corporate insolvency resolution process (“CIRP”) of the Company are Easygo Textiles Private Limited (WELSPUN Group); GHCL Limited; Himatsingka Ventures Private Limited and Shrikant Himatsingka and Dinesh Kumar Himatsingka.

“Resolution Plans received shall be evaluated by the Interim Resolution Professional and then shall be placed before the Committee of Creditors, for its further consideration”, Sintex Industries informed in its exchange filing.

Sintex Industries (earlier known as The Bharat Vijay Mills) has two divisions - textiles and plastics. In the area of textiles, the company has been a pioneer in high-value fabrics. In 2016-17 businesses demerged to Sintex Industries and Sintex Plastics Technology Limited.

The debt-ridden Sintex Industries was put under the Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code, 2016 on a petition filed against the company by Invesco Asset Management (India) Private Limited (Financial Creditor) for a default amount of Rs 15 crore (Principal amount) by the National Company Law Tribunal, Ahmedabad bench vide order on April 6, 2021. The NCLT has appointed Pinakin Shah to oversee the operations and insolvency process. The company owes debt claims worth over Rs 7,500 crore from 27 financial creditors that have been admitted. The creditors include HDFC Bank, Axis Bank, Aditya Birla Finance, LIC, SBI and Invesco Asset Management among others.

The shares of the company have been buzzing for some time now in the anticipation of a takeover. The shares have rallied 108% in the month of November from the levels of Rs 5.60 to Rs 11.65. It touched its 52-week high of Rs 14.09 on November 29. The shares of Sintex Industries hit the upper band at 5% of Rs 10.40 today.