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HomeBusinessNestle stock hit by Maggi row, shares tumble by 9%

Nestle stock hit by Maggi row, shares tumble by 9%

nestleShares of Nestle India tumbled 9% on Wednesday, wiping-out Rs 5,942 crore from its market valuation, amid growing concerns about safety standards of its popular Maggi noodles brand.

After falling 11.86% to Rs 6,000 in intra-day trade, shares of Nestle finally settled at Rs 6,191.10, down 9.05% from its previous close on the BSE. On the NSE, it tanked 9% to end at Rs 6,186.95.

The company’s market valuation declined by Rs 5,942 crore to Rs 59,691.93 crore.”Nestle India continued to remain under pressure and corrected by 11% in the day amidst the ongoing probe with respect to composition of its product Maggi,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

The company said it has not received any order from the central or any state FDA authority for recall of Maggi noodles. The controversy over safety issues has deepened.”We have not received any official communication from the authorities so far,” the company said in a BSE filing.

Meanwhile, Kishore Biyani-led Future Group since Wednesday stopped selling Maggi in its retail stores.

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