Hindustan Motors had breached the upper circuit and hit a new high on Friday and today, it’s the exact opposite – it breached the lower circuit at Rs.11.97, down 10%.

The stock is down on news that the company has declared suspension of work at its Uttarpara Plant with effect from 6.00 AM of May 24, 2014. The company has stated that things have worsened at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product the Ambassador and large accumulation of liabilities. Given the present circumstances, it was left with no alternative but to declare a suspension of work at its Uttarpara Plant till further notice. The suspension of work will enable the company in restricting mounting liabilities and restructure its organisation and finances and bring in a situation conducive to reopening of the plan.

The company will be declaring its Q4 and FY14 numbers on 30th May.