Nestle Shares up Five Percent on Maggi Tests Clearance

The stock advanced by 4.48 percent to settle at Rs 6,135.80 on BSE. During the day, it climbed 5.23 percent to Rs 6,180.
Earlier this week, Snapdeal had announced that it will sell Nestle's Maggi via a unique "flash sale model" as the noodles brand made a comeback after a gap of five months. | (File/Reuters)
Earlier this week, Snapdeal had announced that it will sell Nestle's Maggi via a unique "flash sale model" as the noodles brand made a comeback after a gap of five months. | (File/Reuters)

MUMBAI: Nestle shares rose by nearly 5 per cent after its popular product Maggi cleared the tests conducted by Central Food Technological Research Institute under the directive of the Supreme Court.

The stock advanced by 4.48 per cent to settle at Rs 6,135.80 on BSE. During the day, it climbed 5.23 per cent to Rs 6,180.

On NSE, the scrip moved up by 4.71 per cent to close at Rs 6,147.80.

Led by the uptick in the stock, the company's market valuation rose by Rs 2,536.76 crore to Rs 59,158.76 crore.

"CFTRI has submitted analysis report on Maggi noodles to the Supreme Court. We have been provided with a copy of the reports. We are happy that all 29 samples tested by CFTRI are clear," Nestle India said in a statement yesterday.

The report state that lead levels for all samples are within the permissible limits, it added.

"All 29 samples of Maggi Noodles, (the initial 13 and subsequent 16 samples), were collected by the relevant authorities following due process and then directly submitted to CFTRI," Nestle India said.

The Supreme Court on December 16 last year, ordered testing of samples of Maggi noodles in Mysore laboratory after the National Consumer Disputes Redressal Commission (NCDRC) had directed that it be done in Chennai.

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