Trading in Sintex Industries stock suspended on BSE, NSE

Trading in shares of Sintex Industries was suspended on BSE and NSE with effect from Tuesday after approval of the insolvency resolution plan by the members of committee of creditors (CoC). Stock of Sintex Industries closed at Rs 7.82 on Monday, down 4.98 per cent against the previous close of Rs 8.23 on BSE. It opened at Rs 7.82 and was stuck at the same level through the session.

Total 9.10 lakh shares of the firm changed hands amounting to a turnover of Rs 71.18 lakh.

Market cap of Sintex Industries stood at Rs 468.59 crore on BSE.

"Members of the Exchange are hereby informed that the trading in equity shares of Sintex Industries Limited shall be suspended w.e.f. March 22, 2022, pursuant to approval of the resolution plan by the CoC members, under Section 30(4) of the Insolvency and Bankruptcy Code, 2016 (Code) read with Regulation 39(3) of the CIRP Regulations, as the successful resolution plan subject to approval of Honorable NCLT Ahmedabad, proposes that existing share capital of the Company shall be reduced to Zero and the Company will be delisted from the stock exchanges," the firm said in a communication to the bourses.

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The lenders of the debt-ridden textiles maker Sintex Industries approved the joint bid of Reliance Industries and Assets Care & Reconstruction Enterprise (ACRE) on Sunday to acquire the firm under the insolvency resolution process.

The Committee of Creditors (CoC) of Sintex Industries has unanimously voted in favour of the resolution plan by Reliance Industries and ACRE, according to a regulatory filing released on Sunday.

"The e-voting on approval of Resolution Plan was concluded on March 19, 2022, at 10.00 pm and the resolution plan submitted by Reliance Industries Ltd. jointly with ACRE has been duly approved by the 100 per cent CoC members," the filing said.

Sintex Industries also received bids from Welspun Group firm Easygo Textiles, GHCL and Himatsingka Ventures along with Shrikant Himatsingka and Dinesh Kumar Himatsingka and were placed before the CoC for consideration during the voting process.

The joint resolution plan of RIL and ACRE has proposed that "existing share capital of the company shall be reduced to zero and the company will be delisted from the stock exchanges i.e. BSE and NSE".

Insolvency proceeding against Sintex Industries was initiated in April last year. Claims of about Rs 7,500 crore have been admitted against the company.

As per the procedures under the Insolvency & Bankruptcy Code, the CoC has to approve a bid with at least a 66 per cent majority before it goes to the NCLT for final clearance. Sintex Industries' revenue stood at Rs 1,689.15 crore in FY20-21.