HMT spurts on Rs 735 crore turnaround package

DALAL STREET SPIKES

HMT zoomed up 7.89 per cent up to Rs 80.70, as compared with its previous close of Rs 74.80. The stock hit an intra day high of Rs 86.

The price of the scrip rose after reports that the Board for Reconstruction of Public Sector Enterprises (BRPSE) has cleared a Rs 735-crore revival package for HMT Machine Tools (a subsidiary of HMT Ltd).

HMT is planning to manufacture multi-utility vehicles and are in talks with Japan's Mitsubishi Motors Corp regarding the same.

The company, incorporated in 1953 by the central government as a machine tool manufacturer, has over the years diversified into watches, tractors, printing machinery, metal forming presses, die casting and plastic processing machinery, CNC systems and bearings.