CCEA to consider HMT revival plan, stock spikes 7%
State-controlled HMT rose more than 7 percent on Thursday, continuing upmove for the third consecutive session ahead of cabinet meet.
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.
Trading volumes increased nearly 200 percent to 3,71,557 shares as against five-day average of 1,30,559 shares.