NEW DELHI: Shares of Hindustan Motors advanced nearly 2 per cent in Wednesday's trade after the company received payment against its Ambassador brand that was sold to French car-maker Peugeot Société Anonyme or PSA Automobiles SA in February this year.

Following the development, the stock gained 1.78 per cent to Rs 8.02 on BSE. It opened at Rs 8.40 and touched an intraday high and low of Rs 8.50 and Rs 8 respectively, in the first hour of trade.

In a filing to BSE, Hindustan Motors said "PSA Automobiles SA have remitted 10,342,600 EUR equivalent to INR 80 Crores (Indian Rupees Eighty crores) which the company has received today, towards consideration money from PSA Automobiles SA for the purpose of sale/transfer of the Ambassador brand. "

Production of the iconic 59-year old car was stopped 3 years ago, on May 24, 2014 at the Uttarpara factory of Hindustan Motors.

Promoters held 32.34 per cent stake in the company as of June 2017.

The scrip touched its fresh 52-week high of Rs 12.80 on February 13, 2017 and its 52-week low of Rs 5.97 on September 30, 2016.