HMT shares surge 20% on co revival hopes

Shares of HMT surged nearly 20 per cent to touch its highest trading permissible limit for the day amid reports that the company may get another lease of life.

HMT's stock soared 19.9 per cent to touch its upper circuit limit of Rs 36.75 on the BSE.

At the NSE, the scrip zoomed 19.90 per cent to Rs 36.75. Following the surge in the stock, the company's market value rose by Rs 455.1 crore to Rs 2,785.10 crore.

On the volume front, 5.88 lakh shares of the company changed hands at the BSE, while over 14 lakh shares were traded at the NSE.

As per media reports, the unprecedented demand for timepieces manufactured by the country's first watch-maker has led the government to rethink its decision to close the loss-making public sector company.

According to reports, after the government announced closure of the sick state-run company, demand for HMT watches has shot up sharply.

"The company has been incurring cash losses since last 15 years as can be seen in our Annual Reports submitted to you and other stakeholders from time to time.

The Company is on budgetary support for payment of salaries and statutory dues since over past 10 years," the company had said last month in a filing to the BSE.

The present manpower of the company is 1,045 with an annual wage bill of around Rs 45 crore, it had said.