Alok Industries Ltd on Saturday allotted 83.33 crore equity shares of ₹1 each at a premium of ₹2 per equity share for cash at a total consideration of ₹250 crore to Reliance Industries Ltd (RIL). Pursuant to this acquisition, RIL will hold 37.7 per cent equity share capital of the Mumbai-headquartered integrated textile manufacturer.

In a stock exchange notice, RIL said the acquisition is in accordance with the approved Resolution Plan.

RIL further said that in accordance with the approved Resolution Plan, Alok Industries has today also allotted 250 crore – 9 per cent optionally convertible preference shares (OCCP) of ₹1 each for cash at par, for a total consideration of ₹250 crore to RIL.

In March 2019, RIL had intimated the exchanges regarding approval by the National Company Law Tribunal, Ahmedabad Bench (NCLT) of the Resolution Plan, jointly submitted by RIL and JM Financial Asset Reconstruction Company Ltd (JMFARC) for acquisition of Alok Industries under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code 2016, vide its order dated March 8, 2019.

“Approval of National Company Law Tribunal, Ahmedabad Bench and Competition Commission of India have been received . The acquisition does not fall within related party transactions and none of RIL’s promoter/ promoter group / group companies have any interest in the transaction,” RIL’s statement said.

Alok Industries, incorporated in India on March 12, 1986, has interests in polyester and cotton segments. It has a product suite comprising cotton yarn, apparel fabrics, bed linen, terry towels, embroidery, garments and polyester yarn. It has representative offices for sales promotion in Sri Lanka and Bangladesh

As per RIL’s statement, Alok Industries turned around in FY19, posting a net profit of ₹2,284 crore against a huge net loss of ₹18,207 crore in FY18.

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