Mukesh Ambani owned textile stock jumps 12% today; Check the details

March 18, 2023

Category: General

Country: India

Region: Asia Pacific

By Vikalp Mishra
Trade Brains
Mar 15, 2023, 3:30 pm

The stock of Alok Industries Ltd., a Reliance Group stock, rallied up 12.20% to Rs 13.70 per share during the first half of the trading session on Wednesday, March 15. Part of the Mukesh Ambani-led Reliance Industries, Alok Industries is a small-cap textile company in the cotton and polyester industry.

Reliance Industries had purchased erstwhile bankrupt Alok Industries for Rs 5,000 crore in 2019. The present market capitalization of the company stands close to Rs 6,750 crore.

The textile company is one of the many recent buyouts of the Reliance Group. For instance, last year in September, Reliance Polyester Ltd, a wholly owned subsidiary of Reliance Industries concluded the purchase of polyester operations of Shubhalakshmi Polyesters Ltd and Shubhlaxmi Polytex Ltd. for Rs 1,522 crore and Rs. 70 crore respectively.

In addition to this, the holding company of the group acquired the insolvent Sintex Industries for a value of Rs 3,651 crore in April last year.

Alok was incorporated as a private company in 1986. It established its first polyester texturising plant in 1989. Fast forward to the present date, it is the largest fully integrated textile company. It produces apparel fabric, accessories, cotton & blended yarn, home textiles, and more.

For the quarter that ended December 2022, the company reported a loss of Rs 250 crore on sales of Rs 1,706 crore. During the same period last year, it earned nil profits with a top line of Rs 2,130 crore.

The promoters hold a majority 75% stake in the company. As of the recent shareholding data, Reliance Industries held a 40.01% stake while JM Financial Asset Reconstruction owned a 34.99% stake in the company.

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