HMT spurted 5.86% to Rs 28.90 at 14:21 IST on BSE, after the company said that the Government of India has approved its revival and restructuring plans which envisages financial support of Rs 1083.48 crore.
The announcement was made after market hours on Tuesday, 18 February 2014.
Meanwhile, the S&P BSE Sensex was up 58.88 points, or 0.29%, to 20,693.09
On BSE, so far 2.71 lakh shares were traded in the counter as against an average daily volume of 42,048 shares in the past one quarter.
The stock hit a high of Rs 29.50 and a low of Rs 28 so far during the day. The stock had hit a 52-week high of Rs 40.80 on 21 February 2013. The stock had hit a 52-week low of Rs 20.70 on 19 August 2013.
The stock had underperformed the market over the past one month till 18 February 2014, falling 3.7% compared with the Sensex's 2.04% fall. The scrip had also underperformed the market in past one quarter, sliding 7.77% as against Sensex's 1.04% decline.
The small-cap company has an equity capital of Rs 760.35 crore. Face value per share is Rs 10.
HMT said that the revival and restructuring plans of the company were approved by the Government of India which envisages financial support of Rs 1083.48 crore including cash infusion of Rs 425 crore against which the company has to issue of 8% Redeemable Preferential Share Capital for Rs 425 crore. In the phase I, the Government of India has released the sanctioned funds amounting to Rs 217 crore. Further, HMT informed that the company's board of directors at their 305th meeting held on 25 January 2014 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 which is redeemable within two years as per the terms of sanction of the investment by Government.
HMT reported a net loss of Rs 34.69 crore in Q3 December 2013, higher than net loss of Rs 28.89 crore in Q3 December 2012. Net sales dropped 56.8% to Rs 21.28 crore in Q3 December 2013 over Q3 December 2012.
HMT was incorporated in 1953 by the Government of India as a machine tool manufacturing company. Over the years, the company diversified into watches, tractors, printing machinery, metal forming presses, die casting & plastic processing machinery, CNC systems and bearings. Government owned 90% stake in HMT (as per shareholding pattern as on 31 December 2013).
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