A penny stock to multi-bagger in 3 days! A trader’s & investor’s unbelievable dream did come true.
ELCID Investments has created history by being India’s most expensive stock in three trading sessions, with an increase of 21%.
In financial terms, if an investor had acquired 100 shares in the company with an investment of just ₹353 INR, their investment would have soared to an impressive ₹2.3 crore!
Here’s everything you need to know about this stock, what caused this historic price surge, and more.
What is ELCID Investments?
ELCID Investments Ltd. is a holding company that primarily invests in financial assets like equities, bonds, and other securities.
As an investment firm, its role is to manage and oversee a portfolio of financial investments rather than engage in day-to-day business operations like manufacturing or service provision.
Though relatively under the radar, ELCID has become notable in the stock market for its value-oriented investments, often gaining attention during market shifts or regulatory changes.
Recent Market Events of ELCID Investments Stocks
Here’s a look into what recently happened to these stocks that have made traders and investors suddenly look up ELCID Investments.
Explosive Stock Surge
ELCID’s stock price skyrocketed from ₹3.53 to ₹2,36,250 in a single day, representing a nearly 67,000-fold increase.
Market Capitalization
Following this surge, the company’s market value reached ₹5,470 crore.
BSE Auction Impact
On October 29, the Bombay Stock Exchange (BSE) conducted an auction to determine the fair value of holding companies, including ELCID Investments. This resulted in ELCID surpassing MRF Ltd. to become the most expensive stock on the BSE.
How did ELCID Investments go from ₹3.53 to ₹2,36,250?
Stock prices don’t see such an unseen surge because of a single reason; multiple scenarios contributed to this historic stock price surge.
One of the primary reasons for this increase was the special auction conducted by the Bombay Stock Exchange (BSE) to evaluate the actual value of investment holding companies.
Previously, the company’s traded value has remained between the range of ₹3 to ₹15. Given the company’s book value, which stood at ₹5.84 lakh according to Screener, the disparity in its current stock value and book value needed to be addressed.
This disparity inquiry led to a price discovery process for selected investment holding companies using a special call auction mechanism on October 29.
In June 2024, SEBI issued a circular to introduce a new method aimed at improving price discovery for Investment Holding Companies (IHCs) and Investment Companies (ICs).
Noting that many of these companies were trading well below their book value, SEBI sought to enhance liquidity, encourage fair price discovery, and boost investor interest. As part of this effort, SEBI implemented a framework for a “special call auction without price bands” for these companies.
Summing It Up
ELCID Investments has made history with its remarkable stock price surge, leaping from ₹3.53 to ₹2,36,250 in a matter of days.
With its market cap now over ₹5,470 crore, ELCID’s future outlook appears to be filled with both opportunities.
FAQs
1. What is ELCID Investments?
ELCID Investments Ltd. is a holding company that invests in various financial assets such as equities, bonds, and other securities. It primarily manages a portfolio of investments rather than engaging in manufacturing or service provision.
2. How did ELCID Investments become the most expensive stock in India?
ELCID’s stock price skyrocketed due to a special auction conducted by the Bombay Stock Exchange (BSE), which aimed to improve price discovery for investment holding companies. This auction led to a dramatic price adjustment from ₹3.53 to ₹2,36,250, surpassing MRF Ltd. as India’s most expensive stock.
3. What was the role of the BSE auction in ELCID’s price surge?
The BSE auction, held on October 29, 2024, was designed to address the gap between ELCID’s stock price and its book value. The auction helped reveal the true value of the company’s holdings, triggering a massive price increase.
4. How much could an investor have made by investing in ELCID when the stock was priced at ₹3.53?
If an investor had bought 100 shares at ₹3.53 each, their total investment of ₹353 would have appreciated to ₹2.3 crore when the stock hit ₹2,36,250 per share, representing an astonishing return.
5. What does ELCID’s rise mean for the future of investment holding companies in India?
ELCID’s surge signals the growing importance of investment holding companies in India’s stock market. With SEBI’s new framework aimed at improving liquidity and price discovery, more such companies could attract investor attention, potentially leading to more volatility and opportunities in the sector.
