Alok Industries stock soars 7% after board nod to Rs 3,300 crore NCD issue to Reliance Industries

About this update from Alok Industries Limited

Shares of Alok Industries gained 7 percent after the company’s board approved raising Rs 3,300 crore through issue of Non-Convertible Redeemable Preference Shares (NCRPS) to its parent company Reliance Industries. At 2:23 pm, Alok Industries stock was trading at Rs 19.45.In the exchange filing, Alok Industries said the company is issuing Rs 3,300 crore NCRPS of Re 1 each in one or more tranches on a private placement basis to Reliance Industries.The company added that NCRPS will have a dividend of 9 percent per annum on a cumulative basis and is “redeemable at par at any time at the option of the Company within a period not exceeding 20 years from the date of allotment”.Alok Industries manufactures textile products which includes mending and packing activities; leather and other apparel products. Reliance Industries and JM Financial ARC had acquired Alok Industries in the year 2019 under corporate insolvency resolution process.In its July-September quarter results, Alok Industries saw its revenue from operations fall 19.99 percent from the previous year to Rs 1,359.02 crore. Its loss narrowed from Rs 191.5 crore last year to Rs 174.83 in the quarter. However, its EBITDA more than doubled to Rs 46.18 crore from Rs 19.22 crore. Alok Industries stock has gained 42.24 percent In the last 6 months.Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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