HMT jumps on buzz cabinet to consider revival plan

HMT jumped 7.09% to Rs 36.25 at 10:03 IST on BSE on report that the cabinet committee on economic affairs will consider the company's revival plan today, 18 April 2013.

Meanwhile, the BSE Sensex was up 59.51 points, or 0.32%, to 18,790.67.

On BSE, 3.78 lakh shares were traded in the counter compared with average volume of 74,000 shares over the past two weeks.

The stock hit a high of Rs 36.85 and a low of Rs 34.60 so far during the day.

According to the report, an infusion of Rs 1083 crore has been proposed as part of the plan. The plan includes cash infusion of Rs 448 crore, while Rs 425 crore will be infused into HMT for modernisation and working capital of the company. The government loan to HMT will be converted into equity, report added.

HMT reported a net loss of to Rs 28.89 crore in Q3 December 2012 as against net loss of Rs 30.98 crore in Q3 December 2011. Net sales rose 172.48% to Rs 49.21 crore in Q3 December 2012 over Q3 December 2011.

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.

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