Hindustan Machine Tools (HMT) and ITI has soared more than 9% each on reports that the government has formulated a revival plan for the ailing state-owned companies. The plan includes implementation of pay revision for the employees.
“Based on the recommendations of the Board for Reconstruction of Public Sector Enterprises (BRPSE), the government has approved revival of 43 sick CPSEs at a total cost of Rs 25,083 crore till November 30, 2011," a PTI report suggests, quoting Minister of Heavy Industries and Public Enterprises Praful Patel.
The total cost would include cash assistance worth Rs 3,860 crore and non-cash assistance of Rs 21,223 crore, the report added.
Among individual stocks, HMT has rallied 10% to Rs 31.35 on the Bombay Stock Exchange (BSE). The combined trading volumes on the counter more than doubled, with as many as 261,187 shares changing hands so far, against an average sub- 100,000 shares traded daily in the past two weeks.
ITI has surged 9.2% to Rs 19, with a combined 50,349 shares changing hands on the NSE and BSE.
