Initially starting out as a penny stock worth ₹3.21 (as at July 2024), Elcid Investments Ltd shares hit ₹2,25,000 in fair value and rose another 5% to close at ₹2,36,250, according to a Business Today report which added that this is now priced higher per share than even MRF Ltd.
Meanwhile MRF shares, some of the highest priced in the Indian stock market, closed at ₹1,22,576.50 on the Bombay Stock Exchange (BSE) after the trading session ended on Tuesday, October 30, 2024. It was a ₹478.55 or 0.39% drop.
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Why did Elcid Investments shares rise so high?
The sky-high stock price came after the company was relisted on the BSE on Tuesday, October 29, 2024. It’s market capitalization is ₹4,725 crore now.
Elcid Investments was one among companies like Nalwa Sons Investments, TVS Holdings, Kalyani Investment Company, SIL Investments, Maharashtra Scooters, GFL, Haryana Capfin and Pilani Investment and Industries Corporation which saw a relisting.
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The relisting through a special call auction mechanism for a price discovery on Monday and the rate settlement on Tuesday was announced in a BSE circular dated October 21, 2024
This came after the promoters of the company made a voluntary offer to delist it for a base price of ₹1,61,023 per share. However, this didn’t happen due to non-receipt of requisite majority of public shareholders, according to the report.
Another important reason for Elcid Investments to be priced this high is that it holds 2,83,13,860 equity shares or a 2.95% stake in Asian Paints Ltd, which is worth close to ₹8,500 crore.