Nestle jumps 6% as Maggi clears Bombay HC mandated lab tests

Mumbai: Shares of Nestle India surged nearly 6 percent Friday, adding Rs 3,346 crore to its market valuation, after the company said all samples of Maggi have cleared tests conducted by three laboratories, as mandated by Bombay High Court.

Consequently, the stock climbed 5.59 percent to settle at Rs 6,551 on BSE. During the day, it soared 7.59 percent to Rs 6,675.

At NSE, shares of the company jumped 5.84 percent to end at Rs 6,569.40.

Led by gains in the stock, the company's market valuation rose by Rs 3,345.94 crore to Rs 63,161.94 crore.

Nestle India today said all samples of Maggi have cleared tests conducted by three laboratories, as mandated by Bombay High Court, paving the way for the instant noodles brand to be back in the market after it was banned over the presence of excess lead.

The company said it will now commence manufacturing and will sell "only after the newly manufactured products are also cleared by the designated three laboratories".

"We have received test results from all three laboratories mandated by the Hon'ble Bombay High Court to test Maggi Noodles samples. All the 90 samples, covering six variants, tested by these laboratories are clear with lead much below the permissible limits," Nestle India said in a statement.

The company, which had earlier said it was planning to bring back the Maggi noodles in the market by this year end, further said that it is committed to reintroducing Maggi noodles "at the earliest".

In June, the FSSAI had banned Maggi saying it was "unsafe and hazardous" for consumption after finding lead levels beyond permissible limits. The company had withdrawn the instant noodles from the market.