Shares of Alok Industries Ltd. surged nearly 8% on Tuesday after the board approved raising Rs 3,300 crore via preferential issue of non-convertible redeemable preference shares having a face value of Re 1 each.
The textile company will reclassify its authorised share capital by dividing a total of 4,000-crore shares into 3,500-crore and 500-crore equity shares, according to an exchange filing.
It has set a coupon rate of 9% per annum on the NCRPS, which are redeemable at par for a period not exceeding 20 years from the date of allotment. These NCRPS will not be listed on any stock exchange, the company said.
Alok Industries' stock rose as much as 7.86% during the day to Rs 19.9 apiece, the highest since Oct. 20. It pared gains to trade 6.78% higher at Rs 19.7 apiece compared to a 0.22% decline in the benchmark NSE Nifty 50 at 1.36 p.m.
It has risen 26.69% on a year-to-date basis. The total traded volume so far in the day stood at 2.5 times its 30-day average. The relative strength index was at 60.3. Bloomberg covers no analyst tracking the company.
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