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HMT jumps as government unveils salient features for its revival package

10 May 2013 Evaluate

HMT is currently trading at Rs. 36.95, up by 2.50 points or 7.26% from its previous closing of Rs. 34.45 on the BSE.

The scrip opened at Rs. 36.00 and has touched a high and low of Rs. 38.10 and Rs. 35.75 respectively. So far 1,17,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 50.15 on 18-Oct-2012 and a 52 week low of Rs. 24.50 on 28-Mar-2013.

Last one week high and low of the scrip stood at Rs. 35.00 and Rs. 32.70 respectively. The current market cap of the company is Rs. 2,800.00 crore.

The promoters holding in the company stood at 98.88% while Institutions and Non-Institutions held 0.04% and 1.08% respectively.

HMT’s government approved revival plan amounting to Rs 1,083.48 crore will be implemented in a phased manner, which includes cash infusion of Rs 447.92 crore in the form of issue of 8% redeemable preference share capital of the face value of Rs 425 crore for Plant modernization & capacity augmentation, technology upgradation, working capital, repayment of certain liabilities etc. This also includes a bridge loan from government of India at Rs 22.92 crore at 7% interest p.a., over a period of 2 years.

Non cash assistance will also be provided in the form of conversion of government of India loans into equity to the extent of Rs 429.92 crore and waiver of accumulated interest of Rs 205.64 crore on government of India loans.  Meanwhile, the government has also approved for implementation of revised Pay Scales/Wages and revision in the retirement age of employees from 58 years to 60 years from the date of approval of the Plan by government. Further, government has given permission to sell identified surplus land for redemption of the preference share capital and repayment of bridge loan to government.

HMT manufactures engineering goods like machine tools, watches, tractors, printing machines, die casting and plastic processing machinery, metal forming presses and bearings. It manufactures Mechanical and Quartz Analog watches. The manufacture of wristwatches started as part of diversification strategy of HMT in the year 1962, under Technical collaboration with CITIZEN Watch Company of Japan with a manufacturing unit at Bangalore.

HMT Share Price

65.12 1.54 (2.42%)
17-Apr-2026 16:59 View Price Chart
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