State-controlled HMT rose more than 7 percent on Thursday, continuing upmove for the third consecutive session ahead of cabinet meet.
The cabinet committee on economic affairs (CCEA) will meet today to consider revival plan for the company.
According to sources, the proposal is to infuse Rs 1,083 crore into HMT.
Sources told CNBC-TV18 that HMT's revival plan includes cash infusion of Rs 448 crore while Rs 425 crore infusion into HMT is for modernisation and working capital of the company. Govt loan to HMT will be converted into equity, sources add.
The share rallied more than 31 percent in three sessions. At 09:58 hours IST, the stock gained 7.4 percent to Rs 36.35 amid heavy volumes on Bombay Stock Exchange.
HMT stock price
On November 26, 2015, HMT closed at Rs 51.70, up Rs 1.40, or 2.78 percent. The 52-week high of the share was Rs 77.80 and the 52-week low was Rs 33.65.
The latest book value of the company is Rs 3.16 per share. At current value, the price-to-book value of the company was 16.36.
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