Shares of Alok Industries surged almost 65% in just 5 trading days after the textile manufacturing company announced receiving Rs 3,300 crore from Reliance Industries Ltd (RIL) for subscription of preference shares. 

Alok Industries’ shares hit a 52-week high of Rs 35.50, up 9.91% from the previous closing price on the National Stock Exchange (NSE). The stock has been hitting fresh highs for 5 sessions straight. 

According to an exchange filing dated January 2, the Mumbai-based company said that it had received subscription money of Rs 3,300 crore from RIL for 3,300 crore non-convertible redeemable preference shares of Re 1 each. The shareholders approved the terms and conditions of the company via a special resolution passed on December 23, 2023.

The preferential shares were issued to RIL at a dividend rate of 9% on a private placement basis. Further, the preferential shares will be redeemable at par at any time at the company’s option within a period not exceeding 20 years from the date of allotment.

Alok Industries manufactures home textiles, apparel fabrics, garments, and polyester yarns. Reliance Industries is a promoter in the company and held a 40.01% stake in Alok Industries as of the end of the September quarter.