HMT surges over 10% on heavy volumes

The government may rethink its decision to close the loss-making HMT Watches as demand for watches picking up, report.

Shares of HMT has surged 13% to Rs 34.55 on back of heavy volumes on reports that the government may rethink its decision to close the loss-making HMT Watches as demand for watches is picking up.

HMT Watches Limited, a wholly owned Subsidiary of HMT Limited, is an unlisted Company. The company has been incurring cash losses since last 15 years.

“In view of the above and with the aim of reducing recurring costs, the Ministry had directed the company to formulate an attractive VR / VS Scheme to its employees in discussions with the employees' union/association. A scheme for downsizing of manpower has been prepared based on the direction of DHI, and after due approval of the Board and has been submitted to the Government for its examination and necessary action," HMT had informed the exchanges last month.

After reports that HMT Watches may be wound up made headlines, there has been an unprecedented demand for timepieces manufactured by the country's first watch-maker. The nostalgia-driven clamour has led the government to rethink its decision to close the loss-making public sector company, a Times of India report suggests.

The stock opened at Rs 31.75 and touched high of Rs 34.85 on NSE. The trading volumes on the counter have jumped more than three-fold with a combined 417,645 shares changed hands in first hour of trading on BSE and NSE.