Arvind Limited and Sutlej Textiles are among the investors that have evinced interest in debt-laden Alok Industries, according to sources familiar with the development.
Arvind Limited and Sutlej Textiles are among the investors that have evinced interest in debt-laden Alok Industries, according to sources familiar with the development. Alok has been admitted by the NCLT (National Company Law Tribunal) for insolvency proceedings after it was referred to the court by lenders. Apart from strategic investors, JM Financial ARC and Edelweiss ARC are also understood to have shown interest in Alok Industries. The Ahmedabad Bench of the NCLT had admitted Alok Industries for insolvency proceedings in July this year based on the petition by State Bank of India, which is trying to recover Rs 3,772 crore from the firm. Alok Industries had total debt of Rs 23,443 crore on its books as on March 2017. The company’s enterprise value stands at Rs 23,677 crore. As of September this year, the promoter shareholding in the firm stood at 28.82%, of which 20.75% was held by Alok Knit Exports. Emails sent to JM Financial ARC, Edelweiss ARC, Arvind and Sutlej Textiles seeking comments remained unanswered till the time of going to press. Ajay Joshi, who was appointed as the interim resolution professional for Alok Industries, was confirmed as the resolution professional of the company on August 16, 2017 by a requisite vote of the committee of creditors.
Joshi refused to comment on the interest shown by the strategic investors. The company is listed on the BSE and the NSE. Shares of the company closed at Rs 4.41 on the BSE on Friday with market capitalisation of Rs 607.40 crore.