Mumbai, Feb 29 Reliance Industries (RIL) said on Saturday that it has acquired 37.7 per cent stake in the debt-ridden Alok Industries Ltd for Rs 250 crore.
This comes after the Ahmedabad bench of the National Company Law Tribunal (NCLT) had last year approved its joint acquisition proposal with JM Financial Asset Reconstruction Co Ltd.
State Bank of India (SBI) Chairman Rajnish Kumar had earlier said the bank expects to recover Rs 1,700 crore from Alok Industries.
In an exchange filing, RIL said that in accordance with the approved resolution plan, Alok Industries has on Saturday allotted 83,33,33,333 equity shares of Re 1 each at a premium of Rs 2 per equity share for cash at a total consideration of Rs 250 crore to RIL.
"Pursuant to this acquisition, RIL will hold 37.7 per cent equity share capital of Alok", Reliance Industries said in a regulatory filing.
"It may further be noted that in accordance with the approved resolution plan, Alok Industries has today also allotted 250,00,00,000 9 per cent Optionally Convertible Preference SharesA (OCPS) of Re 1 each for cash at par, for a total consideration of Rs 250 crore to RIL", the company said.
Alok Industries incorporated in India on March 12, 1986 is an integrated textile manufacturer headquartered in Mumbai with interests in the polyester and cotton segments.
Approval of National Company Law Tribunal, Ahmedabad Bench and Competition Commission of India has been received. The acquisition does not fall within related party transactions and none of RIL's promoter or promoter group or group companies have any interest in the transaction, the company said.
( With inputs from IANS )