RIL acquires 9% of Alok Industries preference shares for ₹3,330 crore

• RIL subscribed to 9% non-convertible redeemable preference shares of Alok Industries.
• RIL is a promoter of Alok Industries and holds 40.01% of its equity share capital.
• The stock of Alok Industries hit a 52-week high after the news broke out.
  

Reliance Industries subscribed to 9% non-convertible redeemable preference shares of Alok Industries for ₹3,300 crore on Tuesday. RIL is a promoter, and holds 40.01% of equity share capital of Alok Industries.

It acquired 3,300 crore shares for ₹1 each, RIL said in a notification to the exchanges.

“The acquisition of these preference shares is a related party transaction approved by shareholders of the Company and is on an arm’s length basis. The promoter, promoter group and group companies are not interested in the above transaction. No governmental or regulatory approvals were required for the above transaction,” RIL said in a stock exchange notification.

The stock of Alok Industries hit a 52-week high after the news, and was trading 20% higher as of 2 pm.

(This is a developing story.)