HMT shares zoom over 19% on pact with German firm

Mumbai: Shares of engineering firm HMT on Wednesday soared over 19 percent after the company signed a pact with German firm Fraunhofer for technology upgradation.

The state-run firm's scrip surged 19 percent to settle at Rs 59.50 on BSE. During the day, the stock jumped 20 percent to Rs 60 - its upper circuit limit.

On NSE, shares of the company gained 19.21 percent to Rs 59.55.

Following the sharp rise in the stock, the company's market valuation rose by Rs 708.21 crore to Rs 4,509.21 crore.

In terms of volume, 13.21 lakh shares of the company changed hands at BSE and over 42 lakh shares were traded at NSE during the day.

Fraunhofer is Europe's largest application-oriented research organisation.

"HMT has signed an MoU with Fraunhofer, pertaining to technology upgradation for developing latest technology machines by our subsidiary HMT Machine Tools Ltd.

"The MoU was signed in the presence of Prime Minister Narendra Modi and German Chancellor Angela Merkel," HMT had said in a BSE filing yesterday.