Elcid Investments on October 29 overtook MRF to become India's most expensive stock. Thanks to BSE auction for price discovery of holding companies, each share of Elcid was valued at Rs 2.25 lakh.
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 October 29, MRF shares on BSE closed 0.61% lower at Rs 1.22 lakh apiece.
The highest traded value of Elcid was Rs 4.58 lakh, but price discovered was at Rs 2.25 lakh.
BSE had conducted auction on October 28 for price discovery of holding companies.
Rs 1 lakh investment in this stock would have generated returns to the tune of a whopping Rs 670 crore in the span of a few months.
On X platform, the stock provided fodder to market participants as they couldn't believe at the sudden change in fortune of this stock.
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.
Thus, Elcid started trading at Rs 2.25 lakh on October 29. What more, it is still significantly below the book value.
The company's net profit in June quarter was at Rs 135.95 crore in June 2024, up 39.57% from Rs 97.41 crore in June 2023.
Net sales were at Rs 177.53 crore in June 2024, up 38.28% from Rs 128.38 crore in June 2023.
Elcid Investments is 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.
The main source of earnings is the dividends from its holding companies. The company has over Rs 11,000 crore worth of investments.
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