Hindustan Motors gains as board to consider allotment on preferential shares

Hindustan Motors rose 2.11% to Rs 8.70 at 09:54 IST on BSE after the company scheduled a board meeting to consider allotment of shares on preferential basis.

The company made the announcement after market hours on Thursday, 25 September 2014.

Meanwhile, the S&P BSE Sensex was up 66.18 points or 0.25% at 26,534.54

On BSE, so far 88,784 shares were traded in the counter as against an average daily volume of 3.12 lakh shares in the past one quarter.

The stock hit a high of Rs 8.88 and a low of Rs 8 so far during the day. The stock had hit a 52-week low of Rs 6.60 on 25 March 2014. The stock had hit a 52-week high of Rs 13.30 on 26 May 2014.

The stock had outperformed the market over the past one month till 25 September 2014, rising 12.7% compared with 0.12% rise in the Sensex. The scrip, however, underperformed the market in past one quarter, falling 6.78% as against Sensex's 4.56% rise.

The small-cap company has equity capital of Rs 92.39 crore. Face value per share is Rs 5.

The board of Hindustan Motors would meet on 29 September 2014, to consider allotment of equity shares and non-convertible debentures to the lenders (banks and financial institutions) on preferential basis as approved by Corporate Debt Restructuring Empowered Group.

It may be recalled that Hindustan Motors board of directors at its meeting held on 5 August 2014, had approved issuance of up to 2.38 equity shares of Rs 5 each at a price of Rs 9.44 (including premium of Rs 4.44) aggregating to Rs 22.54 crore and issuance of up to 20.53 crore 10.25% Secured Non-Convertible Debentures of Re 1 aggregating to Rs 20.53 crore on private placement basis to the lenders (Bank and Financial Institutions) towards part payment of recompense of interest amount as approved by Corporate Debt Restructuring Empowered Group at its meeting held on 28 June 2014.

Hindustan Motors reported a net loss of Rs 15.68 crore in the quarter ended 30 June 2014, higher than net loss of Rs 25.10 crore in the quarter ended 30 June 2013. Net sales declined 91.3% to Rs 8.05 crore in the quarter ended 30 June 2014 over 30 June 2013.

Hindustan Motors is an automotive manufacturer based in Kolkata.

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