Reliance Industries (RIL) said on Saturday that it has acquired 37.7 per cent stake in the debt-ridden Alok Industries for Rs 250 crore. 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 shares A (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.
Reliance Industries has received approval from National Company Law Tribunal, Ahmedabad Bench and Competition Commission of India. The acquisition does not come within related party transactions and none of RIL's promoter, promoter group or group companies has any interest in the transaction, the company said.