Textile company Alok Industries Ltd, which has been making consecutive, growing losses since the September 2015 quarter, is considering de-merging its operations into either two or three units, so that these can be individually sold.
The company's debt, compounded by growing losses - loss for the Q3 December 2016 quarter was over Rs. 856 crore - have now ballooned to over Rs. 17,000 crore. ET previously reported that some textile companies and private equity firms have been looking at buying Alok Industries.
Small industries' lender SIDBI had filed a winding up petition against the textile company in November last year. Previously, Deloitte had resigned as the auditors of Alok Industries in December 2015, raising concerns about the use of finances, since auditors rarely resign in the middle of a financial year.
The company's share price has never recovered since its stock price collapse in early January 2008, when it peaked at Rs. 102.7. It is now trading in the single digits, 43% lower than its 52 week high of Rs. 5.41