When Was Elcid Investments Listed?

For retail investors, dreaming of multi-bagger returns often feels like chasing the impossible. However, penny stock Elcid Investments defied all odds, delivering an incredible surge that positioned it as the most expensive stock in India, surpassing the long-standing record held by MRF. This unexpected leap has caught the attention of investors across Dalal Street. 

Elcid Investment Share Price History

On October 29, 2024, Elcid Investments made history as its share price skyrocketed from just ₹3.53 to ₹2.36 lakh in a single trading session. The math behind this surge is staggering: an investor holding 10,000 shares would see their investment soar from ₹35,300 to an astonishing ₹250 crore in a single day.

The Mechanism Behind the Surge

An earnings announcement or news update didn’t trigger the surge in Elcid Investments’ stock. Instead, it was the result of a special price discovery auction organised by stock exchanges, where no price limits were imposed. This call auction was aimed at helping investment holding companies—like Elcid—reach a fair market value. Historically, the stock traded within a narrow ₹3-₹15 range despite a book value of nearly ₹4 lakh per share, indicating significant undervaluation.

Elcid Investments’ Financial Strength

Elcid Investments is a NBFC (non-banking financial company) focused on investments. Its assets include a significant 2.83% stake in Asian Paints, valued at around ₹8,500 crore. This stake contributes heavily to Elcid’s overall market worth. According to its recent annual report for FY24, Elcid’s investments, including both equity and debt, are valued at over ₹12,450 crore.

About Elcid Investments

Elcid Investments is a NBFC registered with the Reserve Bank of India (RBI) under the category of Investment Company. The company has 2 wholly owned subsidiaries: Murahar Investments & Trading Co Ltd and Suptaswar Investments & Trading Co Ltd, which hold small stakes in Asian Paints—0.60% and 0.68%, respectively. Additionally, Elcid Investments itself holds around a 4.2% stake in Asian Paints, which was valued at approximately ₹12,664 crore as of December 2022. Elcid Investments share was listed on the stock exchanges on October 24, 2017. 

Elcid Investment Shareholding Pattern

The shareholding pattern of Elcid Investments has remained stable over the last few quarters. The promoters consistently hold 75% of the shares, while the public owns around 25%. The number of shareholders has gradually increased from 281 in December 2021 to 328 in September 2024, reflecting a slight rise in retail participation.

SEBI’s Role in Price Discovery for Investment Companies

The Securities and Exchange Board of India (SEBI) recently implemented a new price discovery process through special call auctions to address valuation gaps in investment holding companies. This led Elcid’s stock to climb to an incredible ₹2,36,250 per share, setting a new benchmark in the Indian market. The price surge highlights the effectiveness of SEBI’s new mechanism, which aims to improve transparency and valuation for investment companies (ICs) and investment holding companies (IHCs).

India’s Most Expensive Stocks

Before Elcid’s surge, only 30 Indian stocks traded above ₹10,000, with MRF leading the list of high-value stocks that include Page Industries, Shree Cement, Honeywell Automation India, and Nestle India. 

Elcid’s dramatic price increase places it at the top of India’s costliest stocks and serves as a reminder of the potential impact of regulatory mechanisms designed to uncover the true value of investments.

On November 6, 2024, Elcid Investments’ share price NSE opened at ₹14,500.15 and touched the day high of ₹15,817.00 at 12:10 PM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.