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Informist, Monday, May 11, 2026

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Monday approved Shrinivas Spintex Industries Pvt. Ltd.'s INR 1.56-billion resolution plan for debt-ridden Morarjee Textiles Ltd. In addition to this amount, Shrinivas Spintex will infuse INR 250 million as initial working capital depending on the requirements of the company, out of which INR 90 million will be infused upfront as fresh equity, the tribunal noted.

 

All shareholding of shareholders of Morarjee Textiles, except those shares held by its promoter group and related parties, shall be reduced in the ratio of 1:30, which is one share for every 30 shares held by them, said the tribunal. Any fractional shareholding will be rounded off and no cash or kind settlement will be awarded for any shares, the tribunal noted. As a result of the capital reduction, the promoter group and the related parties of Morarjee Textiles will cease to hold any shareholding of the company, and its existing shareholding will stand extinguished, without any further deed, action or payment, said the tribunal.

 

In 2024, the tribunal had admitted a petition by Axis Bank to start insolvency proceedings against Morarjee Textiles. The debt-ridden company had admitted dues of INR 8.92 billion from its creditors. Morarjee Textiles' creditors Indian Bank, Axis Bank, ICICI Bank, Tata Capital Ltd. had assented to Shrinivas Spintex's resolution plan, while ACT Fininvest Ltd., Kotak Mahindra Bank and others had dissented to the plan.

 

The average fair value of Morarjee Textiles is INR 2.29 billion and its average liquidation value is INR 1.40 billion. Morarjee Textiles, part of the Ashok Piramal Group, is a premier Indian textile manufacturer established in 1871, making it one of the oldest in the country. It specialises in high-quality cotton shirting, fashion prints, and voiles, serving as a global player with a focus on premium, sustainable products and high-end yarn counts. 

 

On Monday, shares of Morarjee Textiles Ltd. ended 3.3% higher at INR 8.99 on BSE, and shares of Axis Bank ended 0.3% higher at INR 1,272.30 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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