Shriniwas Spintex to Acquire Morarjee Textiles in Rs 156 Crore Deal

Wardha-based Shriniwas Spintex Industries has been selected as the successful bidder to acquire Morarjee Textiles, a company under the Ashok Piramal Group.

As part of the resolution plan, Shriniwas will make an upfront payment of 30%, with the remaining amount to be disbursed over the next two years. The total bid amounts to Rs 156 crore, which includes Rs 39 crore in process-related costs.

Financial creditors, led by Indian Bank, are expected to recover around Rs 117 crore out of total admitted claims of Rs 625 crore. Indian Bank, the largest lender, is owed Rs 218 crore and holds a 39% voting share.

The resolution professional, Ravi Sethia, with support from KPMG, has submitted the proposal to the National Company Law Tribunal (NCLT) for final approval to complete the acquisition.

News by Rahul Yelligetti.