According to the company's filing to bourse, in consideration of the demerger HMFCL will issue and allot to the shareholders of HML, one equity share of Rs 5 each in HMFCL credited as fully paid up for every 13 equity shares of Rs 5 each fully paid-up held by them in the capital of HML.
Hindustan Motors said the company would consider restructuring its business.
Hindustan Motors Limited, a C K Birla group company, on Sunday launched the LPG version of its Ambassador for the taxi and private car segments in the country.
The VRS notice was pasted on the gates of the company's Uttarpara unit by the management, which said all workers would be paid their statutory dues plus and additional amount of Rs 100,000 each.
Declining sales and an inability to meet its capacity have hobbled the car maker.
The company was also looking for a strategic investor for the revival of the Uttarpara plant.
Hindustan Motors on Monday launched a new variant of its old workhorse Ambassador, which, it hopes, would increase sales of the car by nearly 29 per cent to about 18,000 units this fiscal.
The bank got the share in lieu of repayment of loan.
The country's first ever carmaker, Hindustan Motors, is looking at a second coming. Talks are on for a joint venture with a European auto company focused on the electric vehicle (EV) space. A memorandum of understanding (MoU) has been signed and due diligence is expected to start shortly and will take 2-3 months to conclude.
C K Birla group company Hindustan Motors has reported 50 per cent erosion in peak net worth and accumulated losses of the company stood at Rs 132 crore (Rs 1.32 billion).
Automobile firm Hindustan Motors today launched sports utility vehicle 'Outlander' in the country, priced at Rs 20.2 lakh) Rs 2.02 million), ex-showroom.
Hindustan Motors said on Thursday it has appointed HDFC as consultant to sell a part of its land in West Bengal to private retailers for which it has sought the state government's permission.
Hindustan Motors Ltd decided to sell its holding of 18,00,000 shares in Hindustan Powerplus Ltd, a joint venture with Caterpillar Commercial SA, Belgium, to Caterpillar at Rs 32 a share.
Hindustan Motors currently has two facilities one at Uttarpara in West Bengal and Tiruvallur plant in Tamil Nadu.
An executive of HM, which supplies auto components to leading car manufacturers in the country, said there was a general slowdown in the auto components business as major automobile manufacturers had resorted to production reduction. When asked which areas HM was likely to enter for its non-auto business, the executive said that infrastructure, power transmission and the railways were prospective sectors.
Boosted by its demand, sales jumped 166% in February. The firm is now planning a massive facelift for its cars to keep the momentum going.
The cost of the vehicle comes down by Rs 180,000 with this step.
With the resignation of Uttam Bose as managing director and chief executive officer of HM last week, Moloy Chowdhury has been appointed as acting MD and CEO of the company, which owns assets at Uttarpara and Indore.
Government sources say they believe the company gave a false picture of what it proposed to do with the money from the sale.
Since work was suspended at the plant, worker unions have been on a sit-in protest.
India needs another shot of difficult reform, of the kind only possible at gunpoint. Mr Trump holds that gun to our heads now. A drastic reduction in tariff protection, other elements of sarkari wet-nursing will force entrepreneurial India to become competitive again, argues Shekhar Gupta.
While Maruti held the top spot for four decades, the Ambassador was the best-selling car in post-Independence India for three decades.
The decision reflected Birla's thinking that his stepping down would pave the way for the entry of strategic investors and allow for greater flexibility during discussions, the company said.
As Kolkata marches towards modernity, it is hard to imagine its streets without these cabs, notes Air Commodore Nitin Sathe (retd).
"We are expecting to launch the high-premium SUV 'Outlander' by this year itself in the Indian market and it would be placed between Mitsubishi's Pajero and Montero," company's Executive Vice-President Y V S Vijay Kumar told reporters here on the sidelines of HM's tie-up with Pune-based Opulent Auto Care.
The company said it needed time to restructure the organisation and significantly reduce its liabilities.
If it splits now, who takes what away and leaves what behind? asks Shekhar Gupta.
This is the second deal between Peugeot and the C K Birla group. Last month, the two groups entered a "long-term" partnership, with an initial investment in capital expenditure of close to Rs 700 crore, for vehicle and power-train manufacturing in Tamil Nadu.
Both are finding it difficult to sell one each of their plants -- Chennai Maraimalai Nagar (Ford) and Talegaon near Pune (GM) -- and are finding the road blocked by employee severance snarl-ups, report Sohini Das and Shine Jacob.
'This is purely a brand sale. It includes the Ambassador with its variants. Peugeot is likely to relaunch the brand with multiple variants.'
A lump sum of Rs 100,000 has been offered under the VRS package.
With over 35 brands offering their cars, Hindustan Motors is on the brink of being forgotten.
Hindustan Motor's Uttarpara unit in West Bengal which was shut since April 11 due to labour unrest, reopened on Thursday following an agreement between company management and trade unions.
The Ambassador or Amby was the first car manufactured in India.
The monthly sales of its bread-and-butter Ambassador slipped to just around 800 in the April-February period.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
The state transport department recently announced to give permit to 3,000 new taxis.
Hindustan Motors Limited of the C K Birla group plans major diversification into the auto components sector, from its Uttarpara factory in West Bengal.
State labour minister Purnendu Bose told PTI that the management did not turn up at the tripartite on Tuesday, but sought a bipartite meeting with the government.
Hindustan Motors on Thursday launched Mitsubishi Lancer Cedia, which promises easy manoeuverability and strong road grip on the Indian roads.
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