Alok Industries share price hit the upper circuit in trade today after the firm said the resolution plan jointly submitted by Reliance Industries and JM Financial Asset Reconstruction Company for its acquisition under the Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code 2016, has been approved by the National Company Law Tribunal (NCLT).
Alok Industries share price opened at 4.65, a gain of 4.97% compared to the previous close of 4.43 on BSE.
Alok Industries share was stuck in the upper price band of 4.97% and closed at 4.64 level on BSE.
Alok Industries shares have been rising consecutively for the last five days and have outperformed the sector today by almost 5 percent, with only bids and no offers.
The stock trades above than 5, 20, 50, 100 and 200-day moving average. Although the stock has delivered a whopping 40 percent return over the month, the price has given negative returns of 15 percent over the last 6 months (at Rs. 4) and above 46 percent over the last 12 months(at Rs. 3.18).
Last year in April, both Reliance Industries and JM Financial Asset Reconstruction Company submitted the CIRP resolution plan to acquire the debt-ridden textile manufacturer Alok Industries to National Company Law Tribunal (Ahmedabad Bench). JMFARC is a subsidiary of JM Financial Ltd.
The consortium of lenders, led by State Bank of India, is claiming dues of over Rs 23,000 crore from Alok Industries.
"The resolution plan jointly submitted by Reliance Industries Limited and JM Financial Asset Reconstruction Company (JMFARC) Ltd for the acquisition of Alok Industries Ltd under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code 2016, has been approved by the National Company Law Tribunal by order dated March 8, 2019," Alok Industries said in a BSE filing.
RIL share after the announcement opened 3.25 points above its previous close and rose over 14 points (1 percent jump) to an all time high of Rs 1,361.45.
The Reliance Industries share price traded higher than 5, 20, 50, 100 and 200-day moving average with a 4 days period of consecutive rise at a rate of 7 percent.
The Reliance Industries share price rose 45 percent over a year.
( Edited by Rupa Burman Roy )