The grouping has proposed to write off the entire equity capital of Sintex and delist the stock from the bourses. This means that equity investors who own the Sintex stock will see their capital reduced to zero. Dinesh Kumar Himatsingka’s Himatsingka offered the second-highest bid of Rs 3,279 crore for Sintex, which weaves fabrics for global fashion brands like Armani, Burberry and Diesel.
BK Goenka’s Welspun made a bid of Rs 3,102 crore for the bankrupt company, while Sanjay Dalmia’s GHCL offered Rs 2,140 crore. In a regulatory filing, Sintex said: “All four resolution plans were put for e-voting for approval by the creditors and the resolution plan submitted by RIL jointly with ACRE has been approved by 100% of the creditors.”
It further said that according to the RILACRE resolution plan, it is proposed that the existing share capital of the company shall be reduced to zero and the company will be delisted from the BSE and the NSE. The resolution professional has admitted claims of Rs 7,719 crore from financial creditors, Rs 74 crore from operational creditors and Rs 11 crore from employees of Sintex.
The Gujarat-based company, incorporated in 1931 as The Bharat Vijay Mills, reported a loss of Rs 442 crore on revenue of Rs 2,077 crore in the first nine months of FY22. If RIL completes the Sintex deal, it will be the Mukesh Ambani-led company’s second asset purchase under the bankruptcy code. It had previously bought Alok Industries in partnership with JM Financial Asset Reconstruction Company for Rs 5,050 crore.
Sintex was admitted into the bankruptcy process by the NCLT-Ahmedabad on April 6, 2021, following a petition by Invesco Asset Management after Sintex defaulted payments on principal and interest on non-convertible bonds in September 2019. Sintex owes Rs 15 crore to Invesco.