| A senior Hindustan Motors official said the board will meet tomorrow to consider a proposal to "restructure its business on terms and conditions to be decided by the board." |
| He, however, declined to divulge further details. An attempt to reach the managing director R Santhanam failed. |
| Merchant banking sources close to the deal said the board, in all probability, would tomorrow propose to spin off its Indore and Chennai plants into a new company as a precursor to offload stakes to private equity funds. |
| They added that the stake sale to private equity investors might also be finalised tomorrow. |
| They added that the board of directors will also try to find out a suitable way to utilise excess vacant land in Uttarpara plant, near Kolkata. |
| The company had already sought for the approval of the government of West Bengal for alternate use of surplus land at Uttarpara. |
| Real estate sources in Kolkata said Hindustan Motors, the oldest car maker of the county, could possibly build residential apartments on the 700-acres land. |
| The Uttarpara plant, which makes Ambassador cars, has become a drag on the company's profitability. |
| The company has also plants at Pithampur in Madhya Pradesh, which produces engines and transmissions, and Hosur in Tamil Nadu, which makes heavy-duty transmissions. Its Channai plant makes Lancer and Pajero. |
| Stock brokers were active at the Hindustan Motors counter today. The stock hit an all-time high of Rs 34.40 on NSE today backed by huge volumes of over 3.3 crore shares. |
| The stock closed 2.92 per cent higher on BSE today. |
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