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Mergers & Acquisition

Shriniwas Spintex To Acquire Morarjee Textiles With ₹156 Crore Bid

• By  Textile Excellence
• April 19, 2025

Shriniwas Spintex Industries, based in Wardha, Maharashtra has reportedly emerged as the winning bidder to acquire Morarjee Textiles Ltd., part of the Ashok Piramal Group. The company’s offer of ₹156 crore has been accepted against the total admitted debt claims of ₹892 crore.

As part of the deal, Shriniwas Spintex will pay 30% of the amount upfront, while the balance amount will be paid over a two-year period. The resolution process was carried out under the Insolvency and Bankruptcy Code (IBC), where two other bidders — Dev Land & Housing and Nirmal Ujjwal Credit Co-operative Society — were disqualified under Section 29A. This regulation bars insolvent entities, wilful defaulters, and related parties from participating in such bids.

The total proposed budget includes ₹39 crore allocated for process-related expenses. Although Nirmal Ujjwal reportedly proposed a higher offer of ₹170 crore, their bid was not considered valid under IBC norms.

As per revised claims submitted earlier this month, financial creditors led by Indian Bank are expected to recover about ₹117 crore out of total receivables worth ₹625 crore. Indian Bank holds the largest claim at ₹218 crore, making up 39% of the voting share, followed by Axis Bank at ₹201 crore with 36%.

The final approval for the transaction is currently pending with the National Company Law Tribunal (NCLT), with resolution professional Ravi Sethia, supported by KPMG, handling the process.

Shriniwas Spintex Industries, based in Wardha, Maharashtra has reportedly emerged as the winning bidder to acquire Morarjee Textiles Ltd., part of the Ashok Piramal Group. The company’s offer of ₹156 crore has been accepted against the total admitted debt claims of ₹892 crore.