Alok Inds jumps on getting funding facility from SBI

Alok Industries rose 5.10% to Rs 11.34 at 9:32 IST on BSE after the company said it received first tranche of funding from State Bank of India.

The announcement was made after market hours yesterday, 13 January 2015.

Meanwhile, the BSE Sensex was up 29.13 points, or 0.11%, to 27,454.86.

On BSE, so far 6.70 lakh shares were traded in the counter, compared with an average volume of 27.15 lakh shares in the past one quarter.

The stock hit a high of Rs 11.55 and a low of Rs 11.15 so far during the day. The stock hit a 52-week high of Rs 16.32 on 11 June 2014. The stock hit a 52-week low of Rs 5.80 on 26 March 2014.

The stock had underperformed the market over the past one month till 13 January 2015, sliding 0.64% compared with 0.27% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 12.84% as against Sensex's 3.95% rise.

The small-cap company has an equity capital of Rs 1377.32 crore. Face value per share is Rs 10.

Alok Industries said that it received an initial advance of $250 million (about Rs 1550 crore) from State Bank of India (SBI) under the Export Performance Bank Guarantee scheme. SBI had earlier sanctioned a loan of up to $1633.33 million (about Rs 9800 crore) to the textile major. Alok said it is confident of receiving the balance amount of up to $1383.33 million from SBI in regular tranches in the near future.

Alok Industries' net profit declined 53.2% to Rs 45.36 crore on 0.4% growth in net sales to Rs 3744.84 crore in Q2 September 2014 over Q2 September 2013.

Alok Industries is India's largest fully integrated textile company with a dominant presence in the cotton and polyester segments.

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