Alok Industries surges 4% on stake sale buzz

NEW DELHI: Shares of Alok Industries surged 4 per cent on Friday after reports that Reliance Industries is looking to buy a part of the company.

Following the development, the stock gained 4.77 per cent to hit its upper circuit limit of Rs 4.17 on BSE. It opened at Rs 4.17 and touched an intraday high and low of Rs 4.17 and Rs 4.17 respectively, in trade so far.

The interest may be focused on the polyester yarn unit, three people familiar with the development told ET.

Alok Industries is one of 12 large accounts identified by the Reserve Bank of India in June for bankruptcy proceedings after having defaulted on loans.

"All the business is not of interest to Reliance because it would not add synergies, but one or two divisions may be value accretive to it," said one of the persons cited above.

Promoters held 28.82 per cent stake in the company as of September 2017.

The scrip touched its fresh 52-week high of Rs 4.86 on November 7, 2017 and its 52-week low of Rs 2.30 on June 20, 2017.