Shares of Tata Sponge were up nearly 4% at Rs 613 on the Bombay Stock Exchange after the company said it has received a letter-of-intent from Coal India's subsidiary Eastern Coalfields stating that the company has emerged as a successful bidder for award of 24,000 tonnes per annum of coal at a notified price.
As per the letter-of-intent, the company would be required to execute the Fuel Supply Agreement, valid for a period of five years from the date of execution of the Agreement and is further extendable for another five years. The said agreement shall have a lock-in period of 2 years, Tata Sponge said in a release.
The stock opened at Rs 599 and touched a high of Rs 624. At 10:05am, over 275,000 shares were traded on both the stock exchanges.
