Shares of Tata Coffee today rose sharply by about 11% on the BSE after the US-based coffee retail giant Starbucks said it is in talks with the Indian company for a potential alliance.
Tata Coffee, which opened on a bullish note, jumped further by 10.89% to settle at Rs 890.35 on the BSE. During the day, the scrip zoomed up by 14.79% to a high of Rs 921.70.
On the National Stock Exchange, the scrip closed at Rs 889.80, up 10.66%.
"We are moving forward with MoU (signed with Tata Coffee earlier this year) discussions and planning, and hope to make an announcement soon," Starbucks Coffee International President John Culver said.
The company had earlier signed an MoU with Tata Coffee to form a strategic alliance for sourcing of coffee beans. As per the MoU signed, the company had said it will also explore opportunities to open coffee shops in India.
In a regulatory filing with the BSE, Tata Coffee said, "Appropriate disclosure shall be made as and when there is any further specific price sensitive information on this matter."
The company said that it has nothing new to report regarding its MoU with Starbucks, beyond the disclosures made in January.
