Alok Industries Shares Surge to New Highs on Reliance Industries’ Investment

Alok Industries Shares Surge to New Highs on Reliance Industries' Investment

VoM News Desk | January 9, 2024 | 01:00 PM IST | Breaking News | Follow on Google News

Alok Industries Shares Surge to New Highs on Reliance Industries’ Investment/Bloomberg

Alok Industries Shares Surge to New Highs on Reliance Industries’ Investment

Alok Industries has witnessed a significant bull run over the past six sessions, consistently marking new 52-week highs. Tuesday’s early trading session saw Alok Industries reaching a fresh pinnacle at ₹39.05 per share, indicating an impressive surge of over 80% in the recent sessions.

Experts attribute this remarkable upswing in Alok Industries’ shares to the news of Reliance Industries’ substantial investment in the company through a preferential route. The disclosure made by Alok Industries to the Indian stock market exchanges on 2nd January 2024 revealed a substantial investment of ₹3,300 crore from the conglomerate Reliance Industries. This news swiftly captured the attention of market bulls, propelling the penny stock to soar to successive 52-week highs.

Despite the recent surge, market analysts anticipate further upside potential for this Reliance-backed stock. Forecasts indicate that Alok Industries’ share price might escalate to levels around ₹48 per share in the short term.

Regarding the remarkable rally in Alok Industries’ share price, Avinash Gorakshkar, Head of Research at Profitmart Securities, emphasized, “Reliance Industries’ ₹3,300 crore investment in Alok Industries, acquiring a 9% stake through the preferential route, is the primary catalyst behind the recent surge in Alok Industries’ shares.”

Echoing a positive sentiment on Alok Industries, Sumeet Bagadia, Executive Director at Choice Broking, highlighted the ongoing bullish trend, projecting a potential rise to ₹39 per share. Bagadia advised existing shareholders to hold onto the stock, setting a target of ₹44 and ₹48 per share in the short term, maintaining a stop loss at ₹33.

Alok Industries made headlines on 2nd January 2024, informing the Indian stock market exchanges about Reliance Industries’ funding, stating, “Upon receiving the subscription money of ₹3,300 crore from Reliance Industries Limited, the Company has allotted 3,300,00,00,000 (9%) Non-Convertible Redeemable Preference Shares of Re.1/- each for cash at par aggregating Rs. 3,300,00,00,000/-.” This issuance aligns with the terms and conditions approved by the shareholders of Alok Industries through a special resolution passed on December 23, 2023.

VoM News Desk

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