HMT surges 7% on govt nod for restructuring package

Shares of  HMT rallied as much as 7 percent in early trade on Wednesday following the approval of revival and restructuring package of Rs 1,083 crore by Government of India. "The revival and restructuring plans of the company includes cash infusion of Rs 425 crore against which the company has to issue of 8 percent redeemable preferential shares," the company said in its filing. In the phase I, the Government of India has released the sanctioned funds amounting to Rs 217 crore. Further, the board of directors of the state-run company on January 25 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. That is redeemable within two years as per the terms of sanction of the investment by Government, the release said. At 09:27 hours IST, the stock was up 6.41 percent to Rs 29.05 on the BSE.