Tata Sponge gains on winning bid for coal supplies

The company has won the bid for 24,000 tonnes per annum of coal from Eastern Coalfields

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.