Winning Bizness Desk
Mumbai. Now another company is going to be added to the account of noted industrialist Mukesh Ambani. Syntex Industries Limited, a company going through the process of insolvency, is soon going to be a part of Reliance Industries. The Committee of Creditors (COC) of Syntex Industries has accepted the offers of RIL and ACRE. Along with this, the process of delisting of Syntex Industries from the stock market also started and from today the buying and selling of its stock has stopped.
Share capital will be zero
Actually, there is a condition in the offer made by RIL and ACRE that the share capital of Syntex Industries will be zero. After this, Syntex will be delisted from both the major stock exchanges BSE and NSE. Syntex Industries itself informed the stock exchanges about this development. However, some investors were still buying Syntex shares.
A resolution plan of Rs 2,863 crore
Reliance Industries in association with Assets Care &, Reconstruction Enterprise (ACRE) offered a resolution plan of Rs 2,863 crore. The plan also includes a proposal to give 10 percent equity to the lenders. Offers from RIL and ACRE competed with Welspun Group's EiGo Textiles Pvt Ltd. Two other companies GHCL Ltd and Himatsingka Ventures Pvt Ltd had also submitted bids to buy it.
What Syntex supplies
Syntex Industries supplies clothing to luxury fashion brands like Armani, Hugo Boss, Diesel and Burberry. Syntex owes a total of Rs 7,534.60 crore to 27 lenders. Ares SSG Capital has a major stake in the syntax related to the fabric business. It is worth noting that in the year 2017, Sintex Plastics Technology was separated from Sintex Industries. Sintex Plastics Technology manufactures water storage tanks.