Last Updated on Mar 22, 2022 by Aradhana Gotur
On Monday, textile-manufacturer Sintex closed at Rs 7.82, down 4.98% against the previous day’s closing of Rs 8.23 on BSE. The major stock exchanges BSE and NSE have suspended trading in the debt-ridden Sintex from today, 22 March 2022.
The textile manufacturer’s lenders have approved the joint bid of ACRE and RIL to acquire Sintex Industries under the insolvency resolution process. Additionally, the resolution plan also proposes to delist the company.
Sintex announced that “As per Resolution Plan of Reliance Industries Limited (RIL) jointly with Assets Care & Reconstruction Enterprise Limited (ACRE) it is 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 the textile manufacturer was initiated in April 2021. About Rs 7,500 cr.-worth claims have been admitted against the company.
Caution investors
Despite the likeliness of losing their entire capital as per the resolution plan, some investors continue to buy stocks of Sintex Industries. Investors should beware that stock trading at its 52-week or all-time lows should not be the sole reason to buy it. Doing a fundamental analysis of a company before buying into it reveals such adverse pointers that indicate the feasibility of investing in stocks.
