A little-known smallcap stock turned into a sensation for investors on October 29. Elcid Investments saw an unprecedented surge in its share price, skyrocketing from a mere Rs 3.53 apiece to an mind-boggling Rs 2,36,250 on the BSE in just one trading session.
An investment of Rs 1 lakh in Elcid Investments shares a few months ago could have turned into Rs 670 crore after the price surge.
This phenomenal rise has propelled Elcid Investments to become India’s costliest stock, surpassing tyre maker MRF Ltd’s share price of Rs 1.22 lakh apiece (Tuesday closing price on the BSE).
The astronomical increase of 66,92,535 percent in the Elcid Investments share price was witnessed after the BSE auction for price discovery of holding companies. Each share of Elcid was valued at Rs 2.25 lakh.
During the auction, Elcid’s shares reached a peak traded value of Rs 4.58 lakh, although the price discovered ultimately settled at Rs 2.25 lakh per share. However, the stock had touched an intraday high of Rs 2,36,250 per piece on the BSE.
Before this, Elcid Investments had only been traded this year on June 21, where just 500 shares changed hands at Rs 3.53 each. In July 2024, Elcid Investments was regarded as a penny stock worth only Rs 3.21 apiece.
The BSE auction was part of an effort to improve price discovery for investment holding companies (IHCs).
In June 2024, the Securities and Exchange Board of India (SEBI) announced a new initiative aimed at enhancing price discovery for Investment Companies (ICs) and Investment Holding Companies (IHCs). SEBI identified that numerous ICs and IHCs were trading well below their book values. To address this issue and ensure better liquidity, fair pricing and heightened investor interest, SEBI introduced a framework for a “special call auction with no price bands”, specifically for these stocks. As a result, Elcid commenced trading at Rs 2.25 lakh on October 29.
Currently Elcid Investment’s market capitalisation stands at Rs 52,010 crore.