Nestle shares end 8 per cent higher after FSSAI lab finds Maggi safe

Mumbai: Shares of Nestle India ended the day with nearly 8 per cent gains as the FSSAI-approved laboratory of Central Food Technological Research Institute (CFTRI) found Maggi noodles in compliance with the country's food safety standards. After surging 10.17 per cent to Rs 7,000 in intra-day trade, shares of the company finally ended at Rs 6,831.95, up 7.53 per cent on the BSE.      

At the NSE, the stock soared 7.67 per cent to settle at Rs 6,838.35. Following the rally in the scrip, the company's market valuation surged Rs 4,614.74 crore to Rs 65,870.74 crore. "CFTRI -  an FSSAI approved laboratory has found samples of Nestle's Maggi safe and in compliance with the country's food safety standards. The stock was seen up by more than 10 per cent on this news after being battered in the recent past owing to ban on the company's leading product," said Hiren  Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.      

CFTRI had tested five samples sent by Goa Food and Drug Administration (FDA) when Maggi was banned in June in the wake of findings in Uttar Pradesh and other states that the instant noodles had lead levels beyond permissible limits. "CFTRI finding shows that samples are in compliance with the food safety standards as per the Food Safety and Standards Rules, 2011," Goa FDA Director Salim A Veljee told PTI.      

Goa FDA sent the samples to Mysore-based CFTRI for  retesting after FSSAI expressed apprehensions on state FDA's initial report, which had found lead within permissible limits. In June this year, Nestle had to take Maggi off the shelves, after few states decided to ban the noodles. FSSAI  had also banned the snack terming it "unsafe and hazardous" for human consumption.