Reliance Industries Ltd. said its unit acquired the bankrupt telecom infrastructure provider Reliance Infratel Ltd. for 3,725 crore rupees ($449.65 million) under the corporate insolvency resolution process.

As per the approved resolution plan, Reliance Infratel allotted 50 lakh shares of 10 rupees each, for cash, aggregating 5 crore rupees, to Reliance Projects & Property Management Services Ltd., the Indian conglomerate said in a stock exchange announcement.

The company also allotted 372 crore zero coupon optionally fully convertible debentures of 10 rupees each, for cash, aggregating 3,720 crore rupees to Reliance Projects, it added.

Reliance Industries said the existing paid-up equity share capital of Reliance Infratel, a unit of Reliance Communications Ltd., has been canceled and Reliance Projects now holds 100% stake in the company.

Billionaire Mukesh Ambani's oil-to-telecom conglomerate said the acquisition is synergetic with the telecommunications operations of its subsidiary Reliance Jio Infocomm Ltd.

The Mumbai bench of the National Company Law Tribunal had approved the resolution plan submitted by Reliance Projects via its order dated 3 December 2020 for acquisition of Reliance Infratel under the Section 31 of the Insolvency and Bankruptcy Code 2016, according to the statement.

(Note: $1 = 82.8418 Indian rupees)