Nestle India drops as Bombay High Court declines interim relief in Maggi noodles episode

Nestle India fell 2.25% to Rs 5,942 at 15:19 IST on BSE after Bombay High Court on Friday, 12 June 2015, refused to stay orders of the central food safety regulator and Maharashtra government banning nine variants of Nestle India's Maggi noodles.

The announcement was made on Saturday, 13 June 2015.

Meanwhile, the S&P BSE Sensex was up 171.86 points or 0.65% at 26,597.16.

On BSE, so far 9,497 shares were traded in the counter as against average daily volume of 11,083 shares in the past one quarter.

The stock hit a high of Rs 6,050 and a low of Rs 5,896 so far during the day. The stock had hit a 52-week low of Rs 4,845 on 10 July 2014. The stock had hit a record high of Rs 7,499.95 on 10 March 2015.

The stock had underperformed the market over the past one month till 12 June 2015, sliding 9.35% compared with Sensex's 1.68% fall. The scrip had also underperformed the market in past one quarter, declining 17.15% as against Sensex's 8.66% fall.

The large-cap company has equity capital of Rs 96.42 crore. Face value per share is Rs 10.

The Bombay High Court on Friday, 12 June 2015, heard the petition filed by Nestle India raising issues of interpretation of the Food Safety and Standards Act and the orders passed by the commissioner of Food Safety, Maharashtra and the Food Safety and Standards Authority of India (FSSAI).

At the hearing, Nestle India said it has reiterated its press release of 5 June 2015 and confirmed that it is continuing to remove Maggi noodles from the shelf and that the progress reports are being made to the FSSAI. The Court has also directed the FSSAI not to take any action in respect of the notice which required the company to explain itself within 15 days over the product approval already granted for Maggi noodles, till the next date of hearing, Nestle India said.

The Court has asked the Commissioner of Food Safety, Maharashtra and the FSSAI to file their reply affidavits. The court has fixed the hearing for 30 June 2015.

Nestle India's net profit rose 23.6% to Rs 320.28 crore on 8.4% growth in net sales to Rs 2506.79 crore in Q1 March 2015 over Q1 March 2014.

Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle is the world's leading Nutrition, Health and Wellness company.

Powered by Capital Market - Live News