HMT’s revival & restructuring plan has been approved by the Government of India (GoI) which envisages financial support of Rs 1083.48 crore, including cash infusion of Rs 425 crore against which the Company has to issue of 8% Redeemable Preferential Share Capital for the same amount. As per the phase I of the plan, the Government of India has released the sanctioned funds to the tune to Rs 217 crore.
The company’s board of directors at their meeting held on January 25 had approved the allotment of fully paid-up 8 percent redeemable preference shares of Rs 100 each for a face value of Rs 217 crore in favour of President of India.
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.
