Wardha-based Shriniwas Spintex Industries has emerged as the successful bidder for Morarjee Textiles, a part of the Ashok Piramal Group, offering ?156 crore. This bid comes against the total admitted pending debt claims of ?892 crore for Morarjee Textiles.

According to the resolution plan, Shriniwas Spintex will make an upfront payment of 30% of the bid amount, which includes ?39 crore allocated for process costs. The remaining amount will be paid in installments over the next two years.

Financial creditors, led by Indian Bank, are expected to recover approximately ?117 crore from their total admitted claims of ?625 crore. Indian Bank is the largest lender to Morarjee Textiles, with outstanding dues of ?218 crore and holding a 39 percent voting share in the committee of creditors.

The resolution professional overseeing the insolvency process, Ravi Sethia, supported by KPMG, has already submitted the proposal for the acquisition to the Mumbai bench of the National Company Law Tribunal (NCLT) for final approval. This approval is the final step required to complete the acquisition process and transfer ownership of Morarjee Textiles to Shriniwas Spintex Industries. The Committee of Creditors (CoC) had earlier approved the resolution plan submitted by Shriniwas Spintex Industries Private Limited on April 3, 2025. This approval was subject to the final nod from the Mumbai Bench of the NCLT.

Morarjee Textiles, which faced a debt of ?760 crore as of February 2025, had received bids from three entities, including Nirmal Ujjwal Credit Co-operative Society and Dev Land and Housing, before Shriniwas Spintex emerged as the winning bidder.

This acquisition is expected to provide a new lease of life to Morarjee Textiles, which has been undergoing a corporate insolvency resolution process to address its financial challenges.