Alok Industries To Raise Rs 3,300 Cr From RIL In NCRPS Deal
Textile manufacturer Alok Industries plans to raise Rs 3,300 crore through the issuance of Non-Convertible Redeemable Preference Shares (NCRPS) to its parent company, Reliance Industries Ltd (RIL). This move comes as part of Alok Industries’ ongoing financial strategy.
Having been acquired by Reliance Industries and JM Financial ARC in 2019 through the corporate insolvency resolution process, Alok Industries aims to strengthen its financial position with this capital infusion.
In a regulatory filing on Tuesday, Alok Industries outlined the details of the NCRPS issuance, stating, “The company is issuing Rs 3,300 crore NCRPS of Re 1 each in one or more tranches on a private placement basis to Reliance Industries.”
The NCRPS will carry a 9 per cent per annum dividend on a cumulative basis and will be redeemable at par at any time, at the company’s discretion, within a period not exceeding 20 years from the date of allotment.