Alok Industries: From bankruptcy to becoming a stock which has given investors 850%+ returns within the past 3-4 months, the story of Alok Industries has one name related to it which has changed the fortunes of the firm on the stock exchanges.
From bankruptcy to becoming a stock which has given investors 850% returns within the past few months, the story of Alok Industries has one name related to it which has changed the fortunes of the firm on the stock exchanges. The name is Mukesh Ambani. Alok Industries, once a bankrupt textile manufacturer based out of Mumbai, was appropriated by Mukesh Ambani’s Reliance Industries alongside JM Financial Asset Reconstruction company earlier this year. Post restructuring, Alok Industries stock was listed on the bourses on February 27, at the price of Rs 14. The scrip now trades at Rs 36.15, for the primary time since the 2008 global financial crisis.
Shares of Alok Ind. Ltd.
After listing on the bourses post-restructuring, were first caught during a severe fall that equity markets across the world witnessed in March. Alok Industries’ shares tanked to as low as Rs 3.92 per share by the top of March. However, since then the stock has staged a sensible recovery, going higher and better with each passing day. Mukesh Ambani’s Reliance Industries alongside JM Financial Reconstruction company won the bid for Alok Industries for Rs 5,050 crore, of which Rs 4,550 crore were paid by Reliance Industries. The Ahmedabad bench of the National Company Law Tribunal had in 2019 approved the joint bid.
At the top of March 2020, Reliance Industries held over 83.33 crore shares within the textile manufacturer. RIL has also infused Rs 500 crore in equity into the corporate since then. within the October-December quarter, Alok Industrie posted a consolidated net loss of Rs 194.49 crore which was significantly but the Rs 1,307 crore loss it posted within the same period a year earlier. The total income of the corporate also increased to Rs 877 crore from Rs 714 crore, on-year basis. Alok Industries owed lenders Rs 30,000 crore before heading into insolvency proceedings.
Recently, Alok Ind. Ltd. has been asked by Reliance Industries to manufacture PPE kits because the country fights the novel coronavirus pandemic, consistent with reports. Alok Industries will manufacture quite 1 lakh PPE kits per day at a price of Rs 650 per unit, which can be at one-third the value of PPE kits imported from countries like China.
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