Alok Industries spurts

Alok Industries surged 7.5% to Rs 8.17 at 15:21 IST on BSE after the company said that its Audit Committee will consider a proposal for the demerger of real estate business of Alok Infrastructure into the company.

The announcement was made after market hours on Monday, 23 December 2013.

Meanwhile, the S&P BSE Sensex was down 74.81 points or 0.35% at 21,026.22.

On BSE, so far 21.60 lakh shares were traded in the counter as against average daily volume of 8.42 lakh shares in the past one quarter.

The stock hit a high of Rs 8.35 and a low of Rs 7.51 so far during the day. The stock had hit a 52-week high of Rs 12.56 on 10 January 2013. The stock had hit a 52-week low of Rs 5.87 on 13 August 2013.

The stock had underperformed the market over the past one month till 23 December 2013, declining 5.47% compared with the Sensex's 4.37% rise. The scrip had also underperformed the market in past one quarter, advancing 0.53% as against Sensex's 6.03% gain.

The small-cap company has equity capital of Rs 1377.12 crore. Face value per share is Rs 10.

Alok Industries on Monday, 23 December 2013, said that a meeting of the Audit Committee of the company is scheduled to be held on Thursday, 26 December 2013, to consider a Scheme of Arrangement between Alok Infrastructure and the company for the demerger of the real estate business of Alok Infrastructure into the company, subject to approval of the board of directors of the company, the High Court and other regulatory authorities. Alok Infrastructure is a wholly owned subsidiary of Alok Industries.

Subsequent to the recommendation of the Audit Committee, the company intends to obtain the approval of its board of directors through a circular resolution on 27 December 2013, Alok Industries said.

Alok Industries' net profit declined 66.5% to Rs 96.98 crore on 12.5% growth in net sales to Rs 3740.67 crore in the quarter ended 30 September 2013 over the quarter ended 30 September 2012.

Alok Industries is an integrated textile company, with a dominant presence in the cotton and polyester segments.

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