Shares of Hindustan Motors were down 10% at Rs 12 after the company announced suspension of work at its Uttarpara unit.
"The Company has been transparent in sharing updates about the worsening conditions at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product the Ambassador and large accumulation of liabilities," Hindustan Motors said in a release to the Bombay Stock Exchange on Saturday.
Given the present circumstances it has no alternative but to declare a suspension of work at its Uttarpara Plant till further notice. The suspension of work will enable the Company in restricting mounting liabilities and restructure its organisation and finances and bring in a situation conducive to reopening of the plant, the release said.
Over 800,000 shares were traded on both the stock exchanges so far.
