Textile major Alok Industries has decided to raise Rs 450 crore through rights issue.

In a filing, the company informed that the board of directors have approved to increase in the size of the proposed rights issue to Rs 450 crore from Rs 300 crore earlier.

Last year in October, the board had approved a rights issue of equity shares or convertible instruments, up to Rs 300 crore.

It may be noted that Alok's plan to hike the size of the rights issues has come at that time, when many leading companies have decided to cut or postpone their fund raising plans, due to tight market conditions.

However, Sunil Khandelwal, Chief Financial Officer, Alok Industries, believes that the issue will get a good response.

The shares of the company were closed today at Rs 19.25 on BSE, down 4% compared to previous close of Rs 20.