RIL Subscribes to Preferential Shares Worth Rs 3,300 Crore
Shares of Alok Industries surged 20% to hit its 52-week high of Rs 25.80 on January 2 after Reliance Industries Ltd (RIL) subscribed to non-convertible redeemable preferential shares worth Rs 3,300 crore in the company.
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Preferential Shares Issued at 9% Dividend Rate
The preferential shares were issued at a dividend rate of 9% on a private placement basis to RIL. The shares will also be redeemable at par at any time within 20 years from the date of allotment.
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Table Summary Alok Industries Stock Surges on RIL Investment
| Event | Details |
|---|---|
| Investment Amount | RIL subscribed to preferential shares worth Rs 3,300 crore in Alok Industries |
| Share Price Surge | Alok Industries stock rose 20% to hit a 52-week high of Rs 25.80 |
| Dividend Rate on Preferential Shares | 9% dividend rate on preferential shares issued to RIL |
| Trading Volume | Volumes surged to 11 crore shares vs an average of 4 crore shares in the past 1 month |
| Promoter Stake | RIL holds a 40.01% stake and JM Financial owns a 34.99% stake in Alok Industries |
| Acquisition Background | RIL and JM Financial acquired Alok Industries in 2020 after bankruptcy proceedings |
| Disclaimer | Moneycontrol added a standard disclaimer on RIL’s ownership of Network18 |
Heavy Trading Volume Led to Share Price Surge
Volumes in the Alok Industries counter also surged as over 11 crore shares changed hands compared to the average of 4 crore shares traded daily over the past month. The heavy volumes led to a 31% rise in the stock price in the last 30 days.
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RIL Holds Promoter Stake in Alok Industries
RIL and JM Financial Asset Reconstruction Co acquired Alok Industries in 2020 after it went through bankruptcy proceedings. As of Q3 2022, RIL held a 40.01% stake while JM Financial owns 34.99% in the textile manufacturer.
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Disclaimer from Moneycontrol on RIL Stake
Moneycontrol provided the standard disclaimer that it is part of Network18 which is controlled by Reliance Industries.
In summary, the news article discussed how Alok Industries stock surged 20% after RIL’s Rs 3,300 crore investment through preferential shares issued at a 9% dividend rate to the conglomerate. It also outlined the key details around promoter stakes and trading volumes in the counter.
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People Also Ask
What does Alok Industries do?
Alok Industries is a diversified textile manufacturer based in India, specializing in the production of a wide range of textile products, including yarns, fabrics, and garments. With a focus on innovation and sustainability, Alok Industries caters to various industries such as apparel, home textiles, and technical textiles.
Which brands are owned by Alok Industries?
Alok Industries owns and operates multiple brands across different segments of the textile industry. Some of their prominent brands include Alok, Verve, Legend, and Enigma. Each brand reflects the company’s commitment to quality and innovation in textiles.
Who is the CEO of Alok Industries?
As of my last knowledge update in January 2022, I do not have information about the current CEO of Alok Industries. Please check the latest official sources or news updates for the most recent information on the CEO.
What is the future of Alok Industries share price?
Predicting future share prices involves uncertainties and market dynamics. Factors such as market conditions, industry trends, and company performance influence share prices. Investors should conduct thorough research or consult financial experts for the latest analysis and projections on Alok Industries’ share price.
Is Alok Industries in profit or loss?
For the latest information on Alok Industries’ financial performance, including whether the company is currently in profit or loss, it is recommended to review the latest financial statements, reports, or news releases provided by the company or financial news sources.
What is the old name of Alok Industries?
Alok Industries was formerly known as ‘Alok Textile Industries Ltd.’ before it rebranded to its current name. The name change might be associated with the company’s strategic evolution or business diversification.
Who founded Alok Industries?
Alok Industries was founded by a visionary entrepreneur, Mr. Surana. The company’s inception dates back to 1986 when Mr. Surana laid the foundation, shaping Alok Industries into one of the leading textile manufacturers in India.
How big is Alok Industries?
Alok Industries is a significant player in the textile industry, with a robust presence both in domestic and international markets. The company’s size is often measured by its production capacity, market share, and revenue. For specific quantitative details, refer to the latest financial reports or official statements from Alok Industries.
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