Alok Inds has volatile session

Alok Industries, the penny stock, had a volatile run on the bourses today. In the early sessions, it jumped up 5% to Rs.4.24 and now as the session ends, it is down 5% at Rs.3.84.

The stock price jumped up on unconfirmed news that Reliance Industries is all set to takeover the company as most of the lenders to the company have voted in favor of this.

The news is that the offer, made by Reliance and JM Financial ARC  is all cash and at 15-20% of outstanding loan, marginally higher than the liquidation value of the company which is at Rs.4200 crore. This means Reliance is offering around Rs.4500-5000 crore.

The stock exchanges have asked for a clarification but the company is yet to offer any clarification.

The total debt owed by Alok Inds is to the tune of Rs.29,500 crore.