HMT soars 20% ahead of cabinet meet for revival plan

State-owned HMT gained as much as 20 percent in early trade on Wednesday as government sources indicated that the cabinet committee on economic affairs (CCEA) will consider company's revival plan on Thursday, April 18.

CNBC-TV18 learns from sources that infusion of Rs 1,083 crore has been proposed as part of the plan.

Sources add 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.

At 10:20 hours IST, shares rallied 15.5 percent to Rs 32.85 on Bombay Stock Exchange.

Trading volumes increased 10 times to 2,89,070 equity shares as compared to its five-day average of 28,912 shares.

The share touched its 52-week high Rs 50.15 and 52-week low Rs 24.50 on 18 October, 2012 and 28 March, 2013, respectively.

Market capitalisation of the company currently stands at Rs 2,497.75 crore.