The company made this announcement during trading hours today, 12 March 2012.
Meanwhile, the BSE Sensex was up 60.54 points, or 0.35% to 17,563.78.
On BSE, 2.56 lakh shares were traded in the counter as against average daily volume of 1.21 lakh shares in the past one quarter.
The stock hit a high of Rs 11.90 and a low of Rs 11 so far during the day. The stock had hit a 52-week high of Rs 23.35 on 8 April 2011. The stock had hit a 52-week low of Rs 7.58 on 21 December 2011.
The small-cap stock had outperformed the market over the past one month till 9 March 2012, rising 4.27% compared with Sensex's 1.84% fall. The scrip had also outperformed the market over the past one quarter, surging 7.75% as against Sensex's 7.95% gain.
The company has an equity capital of Rs 80.59 crore. Face value per share is Rs 5.
Hindustan Motors said that the special committee of the board of directors, at its meeting held today, 12 March 2012, allotted 1.18 crore equity shares of Rs 5 each at a premium of Rs 7.25 per equity share and 1.18 crore warrants to the promoter/promoter Group companies.
The company said that each warrant is convertible into one equity share of Rs 5 each fully paid up at a premium of Rs 7.25 per equity share, at any time within a period of 18 months from the date of allotment of warrants.
Hindustan Motors reported net loss of Rs 42.81 crore in Q3 December 2011, compared with net profit of Rs 15.80 crore in Q3 December 2010. Net sales declined 35.1% to Rs 98.58 crore in Q3 December 2011 over Q3 December 2010.
Hindustan Motors manufactures the Ambassador (1500 and 2000 cc diesel, 1800 cc petrol, CNG and LPG variants) in the passenger car segment and light commercial vehicle 1-tonne payload mini-truck HM-Shifeng Winner (1500 cc diesel) at its Uttarpara plant.
Hindustan Motors also has a technical collaboration with Mitsubishi Motors Corporation of Japan and, under this license, the company produces premium passenger cars viz. Lancer, Pajero, Cedia, Montero, Outlander and Lancer Evolution X (Evo X) at its third plant situated at Tiruvallur near Chennai in Tamil Nadu.