Shares of Alok Industries soared 20 percent and was locked in its upper circuit at Rs 25.80, also its highest level in 52-weeks, on January 2 after Reliance Industries Ltd (RIL) subscribed to non-convertible redeemable preferential shares worth Rs 3,300 crore.
The preferential shares were issued at a dividend rate of 9 percent on a private placement basis to RIL. Moreover, the preferential shares will also be redeemable at par any time, within a period not more than 20 years from the date of allotment.
Volumes in the counter also surged as 11 crore shares changed hands on the exchanges so far, significantly higher than the one-month daily traded average of 4 crore shares. The stock has also soared 31 percent in the past month.
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Reliance Industries is also a promoter in the textile manufacturing company. Back in 2020, RIL, along with JM Financial Asset Reconstruction Co had acquired Alok Industries, after the latter was auctioned through bankruptcy proceedings to recover its outstanding dues to creditors.
As of the end of the September quarter, RIL held a 40.01 percent stake in Alok Industries while JM Financial Asset Reconstruction Co owned 34.99 stake.
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