Nestle India plunges 4% as company denies report of parent raising stake

Shares in Nestle India Ltd fell over 4 per cent after the company in a statement to exchanges denied any plans by its parent to increase stake the Indian unit.

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

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 per cent stake in Nestle India while Maggi Enterprises Ltd holds 28.48 per cent, BSE data shows.

At 3:17, the stock was at 5225.50, down 224.35 points or 4.12 per cent.