The share price of the small-cap company hit its 20 percent upper circuit and a 52-week high of Rs 25.86 per share from its previous close of Rs 21.55 on Tuesday, after Reliance Industries invested Rs 3,300 crores.
According to the company filing, Alok Industries’ parent company, Reliance Industries, invested Rs. 3,300 crore in the company by subscribing to 3300 crore 9 percent non-convertible redeemable preference shares.
This transaction was approved by Reliance shareholders and deemed as “arm’s length,” meaning fair and competitive. Reliance Industries is a promoter and owns 40 percent of Alok Industries Limited (AIL).
Looking at the Alok Industries financials, the net revenue decreased by 20 percent year over year, from Rs 1,699 crore in Q2FY23 to Rs 1,359 crore in Q2FY24. Their revenue rose by 3.6 percent sequentially from Rs 1,410 crore in Q1FY24 to the current levels.
In addition, the company’s net loss dropped by 8.8 percent year over year, from a net loss of Rs 192 crores in Q2FY23 to a net loss of Rs 175 crores in Q2FY24. Their loss decreased by 22 percent on a quarterly basis from a net loss of Rs 226 crore in Q1FY24 to the current levels.
Alok Industries is a small-cap company with a market capitalization of Rs 12,840 crores. The share price of the company rose 55 percent in the last six months and 64 percent in the last year.
The company promoter owns 75 percent of the company, the general public owns 22.50 percent, foreign institutional investors own 2.11 percent, and domestic institutional investors own 0.4 percent.
Alok Industries is a textile company that specializes in cotton and polyester. The Company manufactures textiles, including mending and packing, as well as leather and other apparel products.
Written by Sriram KV
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