Despite a market downturn on Monday, the shares of Elcid Investments were locked in ther 5% upper circuit.
On October 29, Elcid’s share price jumped a remarkable 66,92,535%, soaring from Rs 3.53 to an astonishing Rs 2,36,250. This surge in value has positioned Elcid as India’s most expensive stock, surpassing MRF, which was trading at Rs 1,22,471.15 around 11:30 am on Monday.
This incredible price increase of Elcid followed a special call auction session on the Bombay Stock Exchange (BSE) aimed at discovering the prices of holding companies, where Elcid shares were valued at Rs 2.25 lakh.
Notably, this price still remains significantly below the company’s impressive book value of Rs 5,85,225.
Prior to this, MRF was the only stock in India with a per-share price exceeding Rs 1 lakh.To bridge the gap between current market values and the book values of holding companies, the Securities and Exchange Board of India (Sebi) instructed stock exchanges to conduct a special auction session for companies trading at deep discounts to their book value.Also read: Sun Pharma shares tumble 4% as US court blocks Leqselvi launch
Many listed investment and holding companies traded infrequently at significantly lower prices than their book value, and Elcid’s shares had also seen limited trading volume.
The special auction session led to a fair value discovery in the stock, resulting in an unprecedented single-day gain of 6.7 million percent.
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