The announcement was made after market hours on Tuesday, 13 September 2011.

Meanwhile, the BSE Sensex was up 274.94 points, or 1.67%, to 16,742.38.

On BSE, 12.71 lakh shares were traded in the counter compared with average volume of 21.12 lakh shares over the past two weeks.

The stock hit a high of Rs 18.90 and a low of Rs 18.25 so far during the day.

After the latest share purchase, Alok Finance's holding in the paid up capital of the company has increased to 2.62%, from 2.36%. With this acquisition, the total promoter holding in Alok Industries stands at 29.82%, from 29.56%. Increase in stake by promoters in a company helps bolster investor confidence.

Alok Industries' net profit rose 24.21% to Rs 57.77 crore on 49.68% rise in net sales to Rs 1644.89 crore in Q1 June 2011 over Q1 June 2010.

Alok Industries is a fully integrated cotton textile company. It is a diversified manufacturer of home textiles, garments, apparel fabrics and polyester yarns. Alok also has a foothold in the domestic retail segment through a wholly-owned subsidiary Alok H&A under the cash & carry model that offers garments and home textiles. In addition, Alok has also invested in premium commercial/residential projects across Mumbai through its wholly-owned subsidiaries.