Elcid Investments Ltd, India’s most expensive stock by absolute share price, has recently experienced remarkable growth. With a 5% upper circuit limit on the Bombay Stock Exchange (BSE) and an overall gain of over 21% in just four days, this surge has generated significant attention among investors, marking an exceptional moment in the share market investment space. In this article, we delve into the key developments driving this substantial rise in Elcid Investments’ stock price.
The price rally: Elcid Investments hits all-time high
On Monday, 11th November, Elcid Investments’ stock soared to a record ₹2,73,488.85 per share after hitting the 5% upper circuit limit on the BSE. This recent movement comes after a phenomenal surge in price between 29th October and 4th November, during which the stock gained a striking 21.5%. As a result, Elcid Investments has not only solidified its position as India’s most expensive stock but also captured the interest of share market investment enthusiasts.
What triggered the rally? Special call auction and fair value discovery
The primary catalyst behind this meteoric rise in Elcid Investments’ stock was a special call auction conducted by the BSE. This auction, which took place on 28th October, was initiated following instructions from the Securities and Exchange Board of India (SEBI). SEBI directed exchanges to organise special sessions for companies trading at significant discounts to their book value, allowing a fair value discovery.
In this special auction session, Elcid Investments’ share price skyrocketed from ₹3.53 to ₹2,36,250 per share. This 66,92,535% increase propelled it past the previous high held by MRF Ltd, making Elcid Investments India’s most expensive stock. This extraordinary price shift highlights the impact of fair value assessments in the share market investment landscape, where price discovery mechanisms can reshape the stock’s value.
SEBI’s role and framework for special call auctions
The SEBI circular issued on 20th June 2024 established a new framework for conducting special call auctions for investment holding companies. This move aimed to bring transparency to holding companies trading at substantial discounts, ensuring their market values reflect true intrinsic worth.
Following this, BSE announced a 14-day notice for eligible companies, leading to the auction on 28th October. Elcid Investments informed its shareholders about the developments, confirming the SEBI framework’s impact on the company’s price movement.
About Elcid Investments: India’s most valuable NBFC
Incorporated in 1981, Elcid Investments is a non-banking financial company (NBFC) headquartered in Mumbai, with a focus on investments in shares, debentures, and mutual funds. Operating as a holding company, Elcid Investments has two key subsidiaries: Murahar Investments and Trading Co. Ltd. and Suptaswar Investments and Trading Co. Ltd. This strong foundation in asset management and its recent price surge have amplified its appeal in the share market investment sector.
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