Alok Industries Share Analysis
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Alok Industries company profile
Alok Industries is a textile company. about 25% export. 10k crore on equipment. Huge debt till 2017. 19 July, 2017 it was declared bankrupt.
Many companies show interest in buyout Alok Industries at the time.
Alok Industries buyout
Reliance Industries (RIL) & JM Financial Asset Reconstruction Co Ltd acquire 37.7% stake for Rs 250 crore.
83.33 crore equity shares of Re 1 each at a premium of Rs 2 per equity share for cash at total consideration of Rs 250 crore to RIL.
RIL is putting Rs 500 crore of it’s own money and Rs 4,550 crore via bank loans. Make it a total deal of value Rs 5050 crore.
| Date | Price |
|---|---|
| 18 Feb 2020 | 3.32 |
| 19 Feb 2020 | 19 (after RIL) |
| 20 Feb 2020 | 17 (LC starts) |
| 1 Apr 2020 | 3.73 (LC ends) |
| 3 Apr 2020 | 4.31 (UC starts) |
| 27 Apr 2020 | 8.03 (UC ends) |
| 28 Apr 2020 | 6.91 (LC) |
| 29 Apr 2020 | 6.57 (LC) |
| 30 Apr 2020 | 7.48 (UC starts) |
A lot of fluctuation due to demand and supply.
By careful while investing.
Don’t buy on the basis of stock price chart, be mindful.
Alok Industries Trading Price Chart
Alok Industries Shareholding pattern
Share Holding Pattern in (%)
| Standalone | March 2020 | February 2020 | June 2019 | March 2019 | |
|---|---|---|---|---|---|
| Promoters | 6.15 | 9.87 | 9.96 | 9.96 | |
| Pledged | 99.99 | 99.99 | 99.99 | 99.99 | |
| FII/FPI | 1.02 | 1.61 | 2.79 | 3.64 | |
| Total DII | 47.16 | 15.79 | 25.61 | 27.38 | |
| Fin.Insts | 2.21 | 4.14 | 3.54 | 3.84 | |
| Insurance Co | 0.02 | 0.03 | 0 | 0 | |
| MF | 0 | 0 | 0 | 0 | |
| Others DIIs | 44.93 | 11.62 | 22.07 | 23.54 | |
| Others | 45.67 | 72.73 | 61.65 | 59.03 | |
| Total | 100 | 100 | 100.01 | 100.01 |
Alok Industries Finance
figures in crore
| Annual | MAR 2019 | MAR 2018 | MAR 2017 | MAR 2016 | MAR 2015 |
|---|---|---|---|---|---|
| Total Sales | 3,128.76 | 5,333.62 | 8,129.69 | 11,748.75 | 22,130.72 |
| Net Profit | 2,282.13 | -18,217.34 | -3,502.42 | -4,205.94 | 348.76 |
Current Total Debt to lender stands approx INR 30,000 crore with over Rs 5,000 crore loan in SBI.
Companies future:
IT manufacture PPE kits and Mask in times of COVID-19
Alok Ind have lot of potential and modern equipment to manufacture.
If you trust in company based on proper research then do believe in yourself.
Hold if you have bought it. My opinion is not to buy it’s stock for now because of fluctuations and though company have production of PPE kits still in time of corona virus it is not operating to it’s full strength and lots of its businesses is shut.
Alok Industries Why RIL wants to de-list
Why RIL wants to de-list Alok Industries after buy it’s stocks.
37.7% + 250 crore 9 percent Optionally Convertible Preference Shares (OCPS) of Re 1 each
But retail investor take this to court and Supreme court order that Alok Ind can not de-list till 5 years.
But later RIL might not be able to de-list, because company might grow and stock price will get much higher and company have to pay much more to de-list.
to de-list RIL only have to pay 3.8 INR per share but later after 5 year the stock price will be much higher.
But if company have intention to de-list the stock price might not rise.
There is not news by company that it wants to de-list or relist again.
Definitely RIL bought it because RIL saw potential in company and want to make it private to accelerate its potential.
Maybe RIL only want its machinery and equipment