Meanwhile, the S&P BSE Sensex was up 140.48 points or 0.57% at 24,691.65.

Massive volumes accompanied the spurt in the stock. On BSE, so far 73.38 lakh shares were traded in the counter as against average daily volume of 15.03 lakh shares in the past one quarter. The stock hit a low of Rs 4.14 so far during the day. The stock had hit a 52-week high of Rs 9.05 on 9 April 2015. The stock had hit a record low of Rs 3.76 on 18 February 2016. The stock had underperformed the market over the past one month till 15 March 2016, sliding 0.98% compared with Sensex's 4.23% rise. The scrip had also underperformed the market in past one quarter, declining 41.56% as against Sensex's 3.04% fall.

The small-cap company has equity capital of Rs 1377.32 crore. Face value per share is Rs 10.

Media reports suggested that the potential buyers are more keen on individual assets than taking control of Alok Industries. Further, reports suggested that some bankers have been contemplating an alternative plan to split the company's business into cotton and non-cotton units and sell the latter. Meanwhile, Alok Industries in its clarification issued during market hours today, 16 March 2016 said that the banks are running the entire process of implementing the strategic debt restructuring (SDR) scheme and the company has no role to play in this process. It may be recalled that a joint forum of banks led by State Bank of India decided in January 2016 to convert loans extended to Alok Industries into a 65% equity stake by invoking SDR option.

Alok Industries reported net loss of Rs 1638.29 crore in Q3 December 2015 in the quarter ended 31 December 2015 as against net profit of Rs 25.86 crore in the quarter ended 31 December 2014. Net sales declined 8.6% to Rs 3264.05 crore in the quarter ended 31 December 2015 over the quarter ended 31 December 2014.

Alok Industries is one of the India's leading fully integrated textile company, with a dominant presence in the cotton and polyester segments.