Alok Industries

Stocks to Watch Today: Ambuja Cements, AU SFB, Alok Textiles, Hindustan Unilever, HDFC Life, ICICI Lombard, L&T Finance and Rallis India to announce Q1 results on Tuesday.

The tactic is not new for Reliance. In 2020, Reliance Industries acquired 37.7% stake in textile manufacturer Alok Industries Ltd for Rs 250 cr.

Nifty 500 and Nifty Mid-cap 100 index have already seen a surge of over 2.50 and 6 per cent respectively, in the current month

The rally, some analysts argue, comes on the back of the company's change in focus from being a textile play to manufacturing protective gear in battling the Covid-19 pandemic

Capacity has been scaled up to produce more than 100,000 PPE kits per day and cost has been slashed to nearly Rs 650 per unit from the about Rs 2,000 apiece imported price, they said

As of March 2020, the promoters held 6.15 per cent stake in Alok Industries

The appellate tribunal observed that Sebi in its affidavit had also said that there is no requirement for permission of the market regulator for such delisting

The winning bid was Rs 5,000 crore, which was close to Alok Industries' liquidation value of Rs 4,000-4,500 crore

The corporate debtor owes banks Rs 295 billion, which means they are taking a haircut of more than 86%

Bankruptcy proceedings against Alok Industries began on June 22 after lenders moved the National Company Law Tribunal

Bombay HC is set to hear the ongoing liquidation case against Alok Industries on July 19

Joint lenders forum approved SBI's move to file the application

The company owes over Rs 18,000 crore to a consortium of 32 lenders, led by the State Bank of India

This follows the lenders failed attempt to implement strategic debt restructuring (SDR) in company, bankers said

Standalone debt excluding current liabilities stands at Rs 13,650.2 cr and consolidated at Rs 16,081.9 cr as on Sept 2013

Step aimed to protect value

According to media reports the private equity funds along with domestic textile companies are in race to buy the company.