Shares of Elcid Investments, which recently came into limelight because of their sudden increase in value, rose 10% in two sessions and became even more pricey.
On November 4, even as markets were cracking big, the Elcid Investments' stock was trading at 5% upper circuit at a whopping Rs 2.73 lakh.
Last week, Elcid Investments surpassed MRF Ltd to become country's most expensive stock after BSE conducted an auction for price discovery of holding companies.
The smallcap stock created history on Dalal Street as its share price soared from Rs 3.53 to an astounding Rs 2,36,250 in one day, a jump of a mind-boggling 66,92,535%. Meanwhile, on November 4, MRF shares on BSE were trading 1% lower at Rs 1.22 lakh apiece.
What more, Elcid Investments is still significantly below the book value. As per Screener, the book value stands at Rs 5.84 lakh.
Book value per share is a financial metric that measures a company's net asset value (NAV) per share. It's calculated by dividing a company's total equity by the number of outstanding shares.
A June 2024 SEBI circular proposed a new mechanism to improve the price discovery of Investment Companies (ICs) and Investment Holding Companies (IHCs).
SEBI noticed that many ICs and IHCs are trading significantly below their book value.
To help improve liquidity, fair price discovery, and the overall investor interest in the stocks of such companies, SEBI introduced a framework for “special call auction with no price bands” for these stocks.
Post-price discovery, Elcid Investments' shares rose 21% in three sessions.
The market capitalisation of the stock is Rs 5,470 crore.
Elcid Investments is a registered NBFC under investment company category with RBI. The company currently doesn’t have any of its own operational business, but it has a lot of investments in other big companies like Asian Paints, etc.
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