Nestle India declined 2.45% to Rs 5,863.30 at 09:45 IST on BSE, after the company decided to withdraw Maggi noodles off the shelves due to recent developments and unfounded concerns about the product.
The announcement was made before market hours today, 5 June 2015.
Meanwhile, the BSE Sensex was down 48.08 points, or 0.18%, to 26,765.35
On BSE, so far 13,355 shares were traded in the counter, compared with an average volume of 5,646 shares in the past one quarter.
The stock was volatile. The stock hit a high of Rs 5,948.90 and a low of Rs 5,718.20 so far during the day. The stock hit a record high of Rs 7,499.95 on 10 March 2015. The stock hit a 52-week low of Rs 4,755 on 5 June 2014.
The large-cap company has an equity capital of Rs 96.42 crore. Face value per share is Rs 10.
Nestle India said that Maggi Noodles are completely safe and have been trusted in India for over 30 years. The trust of consumers and the safety of products is the company's first priority, Nestle India said. Unfortunately, recent developments and unfounded concerns about the product have led to an environment of confusion for the consumer, to such an extent that Nestle India has decided to withdraw the product off the shelves, despite the product being safe, the company said. The company promises that the trusted Maggi Noodles will be back in the market as soon as the current situation is clarified, it added.
Shares of Nestle India have dropped 13.86% in three trading days from a recent high of Rs 6,807.45 on 2 June 2015.
Earlier, Nestle India had after market hours on 1 June 2015, announced that it understands that consumers are concerned by reports that the authorities in Uttar Pradesh have found elevated levels of lead in a sample pack of Maggi noodles. The company said it is fully cooperating with the authorities who are conducting further tests and the company is awaiting the results.
In April 2015, Uttar Pradesh Food Safety and Drug Administration (UP FSDA) asked Nestle India to withdraw a batch of Maggi noodles which were manufactured in February 2014 after it found high levels of added monosodium glutamate (MSG), a taste enhancer, in the noodles and lead beyond permissible limits.
Nestle India's net profit rose 23.6% to Rs 320.28 crore on 8.1% growth in total income to Rs 2541.95 crore in Q4 March 2015 over Q4 March 2014.
Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle is the world's leading Nutrition, Health and Wellness company.
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