Smallcap firm Alok Industries has been a major multi-bagger in 2020. The firm rose as much as 618 percent to Rs 21.55 currently from Rs 3 in December 2019.

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An investment of Rs 1 lakh in the stock at the beginning of 2020 would have turned into over Rs 7 lakh now.

The firm, which was bankrupt, turned into gold for investors after Reliance Industries chairman Mukesh Ambani and JM Financial Asset Reconstruction jointly bid and acquired the textile manufacturer earlier this year during the insolvency process.

Reliance Industries currently owns a 40.01 percent stake in the firm and JM Financial Asset Reconstruction Company's stake is at 34.99 percent.

RIL has also infused Rs 500 crore in equity into the company since then.

In the June quarter, the company posted a net loss of Rs 9936.75 crore as against a net loss of Rs 120.94 crore during the previous quarter ended June 2019. Sales also declined 57.40 percent to Rs 369.16 crore in Q2 versus Rs 866.63 crore in the year-ago period.

Incorporated in 1986, the firm is an integrated textile manufacturer headquartered in Mumbai with interests in the polyester and cotton segments. It has a product suite comprising of cotton yarn, apparel fabrics, bed linen, terry towels, embroidery, garments and polyester yarn.

Amid the pandemic, RIL redeployed the firm to manufacture Personal Protective Equipment (PPE) for medical professionals treating covid-19 patients.

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First Published:Nov 25, 2020 2:39 PM IST