Tata Sponge Iron rose 3.71% to Rs 613.20 at 11:31 IST on BSE, after the company said that it has received a letter of intent from Eastern Coalfields for award of 24,000 tonne per annum of coal at a notified price.
The announcement was made after market hours on Friday, 24 June 2016.Meanwhile, the S&P BSE Sensex was down 20.82 points or 0.08% at 26,365.01
On BSE, so far 69,000 shares were traded in the counter as against average daily volume of 1.18 lakh shares in the past one quarter. The stock hit a high of Rs 623.70 and a low of Rs 599 so far during the day. The stock had hit a 52-week low of Rs 340 on 12 February 2016. The stock had hit a 52-week high of Rs 678 on 15 June 2015. The stock had underperformed the market over the past 30 days till 24 June 2016, falling 3.11% compared with 0.12% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, gaining 25.36% as against Sensex's 4.18% rise.
The small-cap company has equity capital of Rs 15.40 crore. Face value per share is Rs 10.
Tata Sponge Iron said that the company is in receipt of letter of intent (LOI) from Eastern Coalfields (a subsidiary of Coal India) declaring the company as a successful bidder for award of 24,000 tonne per annum of coal at a notified price (winning premium is zero). The notified price shall be reviewed by Coal India on a half yearly basis, Tata Sponge Iron said. As per the LOI, 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 company said. The agreement shall have a lock-in period of two years. The tonnage will constitute less than 10% of the company's annual coal requirement, it added.
Tata Sponge Iron's consolidated net profit rose 49.47% to Rs 12.81 crore on 17.71% decline in total income to Rs 151.31 crore in Q4 March 2016 over Q4 March 2015.
Tata Sponge Iron is a sponge iron manufacturer.
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