The stock soared 18% to Rs 161 after the company has entered into a pact with Tata Steel for conversion of chrome ore into ferro chrome.
Shares of Nava Bharat Ventures has soared 18% to Rs 161 on the NSE in otherwise weak market after the company announced that it has entered into a pact with Tata Steel for conversion of chrome ore into ferro chrome.
“The company has entered into a conversion agreement with Tata Steel Limited (TSL) for conversion of chrome ore into ferro chrome. The arrangement will commence on receipt of ore and reductants from TSL during this month,” Nava Bharat Ventures said in a statement.
The agreement is initially up to the end of March 2016 and extendable on mutually agreed terms for a further period of four years, it added.
The company said the agreement postulates that the entire smelting capacity of the Odisha plant is dedicated for TSL to produce up to 70,000 MT of high carbon ferro chrome per annum.
The stock hit a high of Rs 163 on the NSE and has seen huge trading volumes. A combined 251,928 shares changed hands till 03:07 p.m. against an average sub 50,000 shares that were traded daily in past two weeks on the NSE and BSE.
Shares of Tata Steel were down 5.2% at Rs 229 on the BSE.