Shares of Elcid Investments, a lesser-known company, recently soared in value, grabbing attention as India’s most expensive stock. In just three trading sessions, the stock rose by 21%, reaching a price of ₹2.73 lakh per share on November 4, despite a broader market downturn.
Last week, Elcid Investments made headlines after surpassing MRF Ltd. to become the country’s costliest stock. This followed a special auction by the Bombay Stock Exchange (BSE), which aimed to better determine the prices of holding companies. Remarkably, Elcid’s stock price jumped from ₹3.53 to ₹2,36,250 in a single day—a staggering increase of 66,92,535%. Meanwhile, MRF’s shares were trading lower at ₹1.22 lakh per share.
Although now the priciest stock, Elcid Investments still trades below its book value, estimated at ₹5.84 lakh per share. The book value reflects a company’s net worth based on its assets, divided by outstanding shares.
This latest price correction is in tune with a recent guideline by SEBI, brought in last June 2024, improving price transparency and liquidity for ICs and IHCs that were trading below their actual value. The SEBI framework allows a “special call auction without price limit” for more appropriate price discovery.
Elcid Investments is an NBFC according to the RBI but doesn’t run any business itself and instead holds shares in firms such as Asian Paints. At its current market capitalization of ₹5,470 crore, the jump in the value of Elcid forms part of a new wave of investor interest in holding firms.
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Source: Moneycontrol
News Desk
