Nestle falls over 4% on denying report of parent raising stake

MUMBAI: Shares of Nestle India 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.