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HMT rallies as government approves revival plan

The government approved the revival and restructuring package of Rs 1,083 crore.

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SI Reporter Mumbai
Last Updated : Feb 19 2014 | 2:02 PM IST
HMT has rallied 6% to Rs 28.90, extending its previous day’s over 7% surge after the company said the government approved the revival and restructuring package of Rs 1,083 crore.

"The revival and restructuring plans of the company was approved by the Government of India which envisages financial support of Rs 1083.48 crore which includes cash infusion of Rs 425 crore against which the company has to issue of 8% redeemable preferential shares," HMT in a BSE filing.

In the phase I the Government of India have released the sanctioned funds amounting to Rs 217 crore, it added.

The board of directors of the company on January 25 has already approved the allotment of fully paid-up 8% redeemable preference shares of Rs 100 each for a face value of Rs 217 crore in favour of President of India.

The stock opened at Rs 28.35 and touched a high of Rs 29.50 on BSE. A combined 1.1 million shares changed hands till 1350 hours against an average sub 0.50 million shares that were traded daily in past two weeks on the BSE and NSE.
 

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First Published: Feb 19 2014 | 1:59 PM IST

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