Shares in Alok Industries surged over 8 per cent to Rs. 13.40 on Tuesday as State Bank of India has sanctioned a $207.41 million (around Rs. 1,244 crore) export performance bank guarantee to it.
Alok Industries in a filing to exchanges said, SBI has also agreed to front for another $1.42 billion export performance bank guarantee with some clauses.
The above loan sanctions will help Alok Industries avail of a long-term export advance of around Rs. 9,800 crore, which will be used to repay its existing high-cost debt. This will save around 6 per cent interest on the domestic debt.