This penny stock locked into the 20 per cent upper circuit: Reliance Industries made investment of worth Rs 3,300 crore in this textile stock!
On January 2, stock price rose 20 per cent and locked in its upper circuit at Rs 25.80, its highest level in 52 week
On January 2, Alok Industries' stock rose 20 per cent and locked in its upper circuit at Rs 25.80, its highest level in 52 weeks, after Reliance Industries Ltd subscribed to non-convertible redeemable preferential shares worth Rs 3,300 crore.
Alok Industries Ltd experienced a dynamic intraday session, opening at Rs 21.65 and reaching a high of Rs 25.8, while also encountering a low of Rs 21. The closing price settled at Rs 25.8, marking a notable 20 per cent change from the previous close of Rs 21.5. The market capitalization for the company stands at Rs 12,852.15 crore
Volumes in the counter have also increased, with 11 crore shares changing hands on the exchanges. The stock has also increased by 31 per cent in the last month.
Upon receipt of subscription money of Rs 3,300,00,00,000 from Reliance Industries Limited, the Company has today, at around 2.00 p.m., allotted to Reliance Industries Limited 3,300,00,00,000, 9 per cent Non-Convertible Redeemable Preference Shares of Rs 1, each for cash at par aggregating Rs. 3,300,00,00,000 on the terms and conditions as approved by the shareholders of the Company vide special resolution passed on December 23, 2023. RIL owned 40.01 per cent of Alok Industries at the end of the September quarter, while JM Financial Asset Reconstruction Co controlled 34.99 per cent.
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Company to meet its expansion goals went on to borrow money up to 30,000 crore and then was not able to meet its obligation. It was the only textile company that was placed on the list of the 12 stressed units which was identified with the amendment of IBC and soon was put as an insolvent company.
Alok Industries is an integrated textile company with a product range comprising of both cotton and polyester. Alok’s plants are situated at Vapi (in Gujarat) and Silvassa (Union territory near Vapi) and the company has a wide customer base across the world that includes global retail brands, importers, private labels and domestic retailers, garment & textile manufacturers and traders. This is the popular penny stock trading near Rs 25.
Disclaimer: The article is for informational purposes only and not investment advice.