Mumbai, Sept. 5: The Nestle counter was again in the thick of action on stock exchanges today following multiple block deals of close to 17 lakh shares today. The Unit Trust of India (UTI) and Life Insurance Corporation (LIC) are understood to have offloaded their stakes to the parent.
According to market circles, multiple block trades were seen during the first hour of trading itself. During early trading on the Bombay Stock Exchange (BSE), over 2.84 lakh shares changed hands at Rs 570 per share in a single trade, while another block was transacted at Rs 572 per share. These apart, there were other deals in lots of 18,000-25,000 shares.
On August 23, Nestle India had witnessed hectic activity with over 30 lakh shares being transacted. UTI then offloaded 15.34 lakh shares of the company’s equity to Nestle SA at Rs 570 per share. The deal fetched the Trust Rs 87.44 crore. The sale by UTI followed an approval secured by Nestle to buy up to 10 per cent of Nestle India’s equity through creeping acquisition from the open market.
On the BSE today, the Nestle scrip after opening at Rs 561, shot up to an intra-day high of Rs 575, before finishing at Rs 571.20, a sharp rise of Rs 11.30 over its last finish. The counter saw 2,925 trades with 7.50 lakh shares being transacted, generating a total turnover of Rs 42.72 crore.
On March 31 this year, the Foreign Investment Promotion Board had cleared Nestle’s proposal to increase its foreign equity from 53.96 per cent to 63.96 per cent. After this approval, the company has been mopping up shares from the market in small lots. In India, Nestle has a presence in the foods sector with leading market shares in instant coffee, infant foods, milk products and noodles. Some of the leading brands of the company include Cerelac, Nescafe, Maggie, Kitkat, Munch and Pure Life.