Alok Industries raises Rs 460 crores

Alok Industries has raised Rs 460 crores through placement

of shares with qualified institutional buyers. The board has declared closure of the private placement offer and approved allotment of shares at Rs 23.32 a piece. The company had come out with the issue to raise Rs 350 crores, with an option to raise a further Rs 110 crores if the issue is fully subscribed, totaling Rs 460 crores. However, Alok Industries has not given out the number of shares allotted to the investors. The company’s businesses span across weaving, knitting, processing, home textiles and garments.

 

Their shares are hovering around the qualified institutional placement (QIP) issue price of about Rs 23.30 a piece, perhaps reflecting the positive sentiment for the textile sector. They had recently entered the domestic retail segment through a wholly-owned subsidiary, Alok Retail India Ltd, with a chain of stores named H&A that offer garments and home textiles at attractive prices.

Alok, which has over 60 per cent of its revenue accruing from apparel fabric and home textiles, has leading overseas retail chains and brands as its customers. Besides being an integrated player from yarn to ready-made garments in both cotton and synthetic textiles, Alok is also able to derisk input costs during business cycles. Given the buoyant local and global textile markets, the company would register good revenue accretion arising from capacity expansion.