Shares of Nava Bharat gained more than 5 per cent on Tuesday after the company said that it has entered into an agreement with Tata Steel for conversion of Chrome Ore into Ferro Chrome.

Nava Bharat Ventures Ltd has informed BSE that the Company has entered into a Conversion Agreement with M/s. Tata Steel Limited (TSL) for conversion of Chrome Ore into Ferro Chrome, the company said in the BSE filing.

The arrangement will commence upon the receipt of ore and reductants from TSL during this month, added further.

The Agreement is initially up to the end of March 2016 and extendable on mutually agreed terms for a further period of four (4) years.

The Agreement postulates that the entire smelting capacity of the Odisha plant is dedicated for TSL to ptoduce up to 70,000 MT of High Carbon Ferro Chrome per annum.

Shares of the company were seen trading at Rs 142.75 on BSE at 12.16 pm IST. IT touched an intra-day high of Rs 144.90 during the trade.