Nestle India shares fall over 4 pct on denying report of parent raising stake

Written by PTI | Mumbai | Updated: Feb 15 2014, 03:46am hrs
Nestle India, Nestle India sharesNestle India shares rose 2.6 percent on reports that its parent was looking to raise stake in the company. Reuters
Shares of Nestle India Ltd today fell by over 4 per cent after the company denied any plans by its parent firm to increase stake in the Indian unit.

The FMCG major's scrip settled at Rs 5218.65, down 4.24 per cent from its previous close on the BSE. During the day, the stock fell by 4.58 per cent to Rs 5200.

At the NSE, the scrip closed 3.72 per cent lower at Rs 5,235.

According to a media report, Swiss multinational food and beverage company Nestle is planning to raise stake in its Indian arm to 75 per cent from 62.76 per cent at present.

Nestle, however, in a clarification to the BSE said, "No such negotiations are talking place. We are not aware of any such proposal of Nestle S.A. for increase of stake in Nestle India."

Nestle SA holds 34.28 per cent stake in Nestle India, while Maggi Enterprises Ltd has 28.48 per cent equity, as per September quarter shareholding data.

Nestle India falls, says parent has no plans to raise stake

(Reuters): Shares in Nestle India Ltd fell 4 percent after the company in a statement to exchanges denied any plans by its parent to increase stake the Indian unit.

Nestle India shares had risen 2.6 percent on Wednesday on reports that its parent was looking to raise stake in the company.

Read story: Nestle eyes a bigger India bite

Nestle India says: "No such negotiations are talking place," referring to the news item appearing in a leading financial daily titled "Nestle parent to increase stake in Indian arm by 12.24% for $1.2 bn".

Parent Nestle S.A. holds 34.28 percent stake in Nestle India while Maggi Enterprises Ltd holds 28.48 percent, BSE data shows.