Alok Industries, turned into a penny stock today due to its debt, is amongst the top three losers on the BSE, losing over 6.5% intra day.

The company is scheduled to hold its EGM today and the main purpose would be to get into the SDR process.Under "strategic debt restructuring" (SDR) scheme, the banks to whom the company owes money hold 51% or more of the equity after the debt-for-share conversion. It is aiming to convert Rs.2556 crore of its debt into equity.

The company sank into losses and a quagmire of debt after it started buying high value real estate and then exiting from these, selling them at a loss. This diversion of money to realty instead of concentrating on its core business of textiles is what did it In. Over 25 lenders have total outstanding dues of over Rs 13,000 crore.