Shares of the troubled Hindustan Motors spiked nearly 20 per cent on the BSE on Monday amid reports that several foreign auto majors are eyeing a stake in one of the country’s oldest carmakers.
The scrip of the firm, maker of India’s iconic Ambassador car, opened almost flat on the Bombay Stock Exchange but within minutes it jumped sharply to hit Rs 24.6, up 20 per cent from its previous close.
At 2.10 pm, the stock was trading at Rs 24.25, up 18.29 per cent, on the BSE.
A similar trend was seen on the National Stock Exchange, where the scrip was quoting at Rs 24.25, up 18.29 per cent.
The broader market was also firm and the benchmark Sensex was quoting at 17,902.1, higher by 348 points. According to media reports, General Motors, Mitsubishi, and Isuzu Motors are eyeing a stake in Hindustan Motors.
This was, however, denied by the company, which is currently in the process of reporting itself to the Board for Industrial and Financial Reconstruction.
“These are speculations and we will not comment on speculations,” Hindustan Motors chief financial officer, Mr Yogesh Goenka, said. He, however, said the company is currently in the process to report itself to the BIFR. “Once we get the accounts approved by the shareholders at the annual general meeting, we will report to the BIFR,” Mr Goenka said, adding the date for the AGM would be announced through stock exchanges.
Last month, Hindustan Motors had stated that it would report itself to the BIFR as its net worth has eroded by 50 per cent from the peak in the preceding four years. For the financial year ended March 31, 2010 the company’s consolidated net loss stood at Rs 42.8 crore, further plunging it into debt woes. — PTI