Reliance Industries (RIL) said it has acquired 37.7% stake in textile manufacturer Alok Industries for Rs 250 crore.
RIL and JM Financial Asset Reconstruction Co had jointly bid for acquiring Alok Industries that was auctioned under the insolvency and bankruptcy law by lenders to recover their unpaid loans. The resolution plan was approved last year by the National Company Law Tribunal, Ahmedabad Bench.Alok Industries on Friday (28 February 2020) allotted 83,33,33,333 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. Pursuant to this acquisition, RIL will hold 37.7% equity share capital of Alok Industries.
Further, Alok Industries also allotted 250,00,00,000-9% optionally convertible preference shares (OCPS) of Re 1 each for cash at par, for Rs 250 crore to RIL.
On Friday, 28 February 2020, shares of Alok Industries fell 4.93% to Rs 13.30 while RIL dropped 4.12% to end at Rs 1,328.65.
Alok Industries, incorporated in 1986, is an integrated textile manufacturer headquartered in Mumbai with interests in the polyester and cotton segments. It has a product suite comprising of cotton yarn, apparel fabrics, bed linen, terry towels, embroidery, garments and polyester yarn. The firm has representative offices for sales promotion in Sri Lanka and Bangladesh.
Reliance Industries is engaged in refining, including manufacturing of refined petroleum products, and petrochemicals, including manufacturing of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms. The company's segments include refining, petrochemicals, oil and gas, organized retail and others.
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