RIL shines post acquiring 37.7 per cent stake in Alok Industries

Reliance Industries Limited (RIL) announced that the company has acquired 37.7 per cent stake in Mumbai-based textile manufacturing company-Alok Industries for Rs 250 crore.  

Reliance Industries informed in a regulatory filing that in accordance with the approved resolution plan, Alok Industries have allotted 83.33 crore equity shares of Rs 1 each at a premium of Rs 2 per equity share, at a total consideration of Rs 250 crore. Besides, the company also allotted Rs 250 crore with nine per cent Optionally Convertible Preference Shares (OCPS) for Rupee 1 each for a total consideration of Rs 250 crore to RIL.

Approved by Ahmedabad bench of National Company Law Tribunal (NCLT) in March 2019, RIL had jointly bid with JM Financial Asset Reconstruction Company Ltd for acquiring Alok Industries, which was auctioned by the lenders under the Insolvency and Bankruptcy Code (IBC) 2016 to recover their unpaid loans.

At 9.53 am on Monday, Reliance Industries Ltd is trading at Rs 1,363.95, up by 2.66 per cent against its previous close of Rs 1,328.65. Its 52-week high is Rs 1,617.80 and its 52-week low is Rs 1,095.65 on BSE.