Alok Industries: Preferential shares were privately placed with RIL at a dividend rate of nine percent.
Once Reliance Industries Ltd (RIL) subscribed for non-convertible redeemable preferential shares worth Rs 3,300 crore on January 2, shares of Alok Industries surged by 20 percent and were locked in their upper circuit at Rs 25.80, also the highest level in 52 weeks.
Preferential shares were privately placed with RIL at a dividend rate of nine percent. Furthermore, within a maximum of 20 years from the date of allotment, the preferential shares will also be redeemable at par at any time.
Volumes in the counter have also increased, with 11 crore shares changing hands on the exchanges thus far, far exceeding the one-month daily traded average of 4 crore shares. In addition, the stock has increased by 31% in the last month.
Reliance Industries also has a stake in the textile manufacturing firm. RIL and JM Financial Asset Reconstruction Co acquired Alok Industries in 2020 after the latter was auctioned off in bankruptcy proceedings to recover its outstanding debts to creditors.
RIL had a 40.01 percent stake in Alok Industries at the end of the September quarter, while JM Financial Asset Reconstruction Co had a 34.99 percent stake.
