Nestle surges nearly 6% after Bombay HC sets aside Maggi ban
Shares of Nestle India surged nearly 6% on Thursday after the Bombay high court quashed orders of food regulators banning Maggi noodles.business Updated: Aug 13, 2015 15:15 IST
Shares of Nestle India surged nearly 6% on Thursday after the Bombay high court quashed orders of food regulators banning Maggi noodles.
The stock jumped 5.82% to Rs 6,545 on BSE. On NSE, it rose 4.79% to Rs 6,533.
The court allowed Nestle to send five samples of each variant of noodles for fresh testing to three accredited labs in Punjab, Hyderabad and Jaipur.
The court said that if lead content is found below permissible limit by the three labs, Nestle will be allowed to manufacture Maggi noodles. It observed that principles of natural justice were not followed because the manufacturer was not given a hearing and the laboratories where tests were performed to determine lead content were not authorised.
Read: Bombay HC quashes Maggi ban, but orders fresh tests
Earlier, Nestle had to withdraw its popular instant noodles Maggi from the market over allegations of high lead content and presence of MSG (monosodium glutamate).
Nestle's stock had fallen on Wednesday after the government filed a class action suit against the company seeking over Rs 640 crore in damages for alleged unfair trade practices, false labelling and misleading advertisements.