Hindustan Motors stock wakes up from a slumber, doubles investor wealth in one month – here’s why

• Hindustan Motors, the maker of the legendary-but-now-dead Ambassador, could come back to life.
  
• Although unconfirmed, these reports have sent the company’s shares to dizzying heights, more than doubling since the news first broke out in late May.
  
• Hindustan Motors is also rumoured to be exploring the launch of electric scooters.
  

Hindustan Motors stock has woken up from a deep slumber, with reports of the company reviving the legendary Ambassador brand and launching a new electric car.

Although there has been no confirmation from the company in this regard, investors and speculators alike have sent the Hindustan Motors stock to dizzy heights.

Every ₹10,000 invested in Hindustan Motors stock is now worth ₹24,500, in less than a month’s time.

An electric version of the legendary Ambassador could revive Hindustan Motors

Hindustan Motors is India’s first car maker and is known for the legendary Ambassador, which used to be a status symbol at one point of time. The car remained in production for 56 years, from 1958 to 2014. Even though it is a relic of the past now, an electric variant could revive the company.

Equity discussions are underway

A memorandum of understanding (MoU) has reportedly been signed by Hindustan Motors and the required due diligence is expected to take around three months.

Uttam Bose, a director of Hindustan Motors has said the companies are currently discussing the equity structure. In the current proposed structure, Hindustan Motors will own 51% of the stake and the unnamed European company will own the remaining 49%.

Interestingly enough, the Ambassador-maker could also launch electric scooters – this could give it a far wider reach than an electric car.

“Initially, the project will launch two-wheelers and subsequently four -wheelers,” said Uttam Bose in a statement to Business Standard.

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