A stock surprised everyone in the stock market because it registered an astonishing rise in just one day. There was a 66,92,535% increase in this stock in a single day. This share increased from Rs 3 to Rs 2.36 crore. What happened to suddenly make the Rs 3 stock cross Rs 2.36 lakh? This action turned investors into millionaires overnight.
This stock was traded only once in the year 2024, on June 21, at Rs 3.53 per share and only 500 shares were exchanged. On Tuesday, its share price suddenly increased to Rs 2,36,250 with a small trading volume of 241 shares. At Rs 2.36 lakh per share, it is now the most expensive stock in India, surpassing MRF’s price of Rs 1.2 lakh.
India’s most expensive stock
The small cap stock that has outperformed MRF stock is Elcid Investment Ltd Share, which relisted on BSE on Tuesday, October 29 at a price of Rs 2,25,000, but during the day its share increased by 5 per cent and reached. 2,36,250 crore, bringing its total market capitalization to around Rs 4,800 crore.
How did this miracle occur?
Now the most important question is: how can the value of a stock increase by 67 lakh percent in a single day? There is no fraud anywhere. But this is not visible in the case of Alcid because he was only listed on the orders of SEBI. On Monday, the BSE released the results of the special share auction held to find out the value of the company’s shares. During this auction, there was a rise in the shares of the company and this share was quoted at a price of more than Rs 2 lakh.
To reduce the difference between the current market value and the book value of these special share auction holding companies, SEBI had asked the exchanges to conduct a heavily discounted auction session. Currently, Alcid’s market capitalization is Rs 4,725 and it has a 1.28 per cent stake in Asian Paints.
The circular was issued on October 21.
In the BSE circular issued on October 21, it is said that selected investment holding companies will be listed again on Monday through a special auction to decide the share price of the company. After the special provision, the effective rates were settled on Tuesday, October 29. Alcide Investments was one of them.
Why is the stock so expensive?
Alcid Investments, with share capital of Rs 2,00,000, holds 2,83,13,860 equity shares or 2.95 per cent stake in Asian Paints Ltd, worth about Rs 8,500 crore at last close. This is the only reason why this stock is selling at such a high price in the stock markets.
investing money is riskier
Kranthi Bathini, head of equity strategy at Wealthmills Securities, said the business of such companies is to own shares of other companies that dictate share prices for investors. Investing money in these types of companies is based entirely on the risk appetite of individuals, but it must be taken into account that there may be liquidity risk in these companies.
(Note: Before investing in any stock, definitely seek the help of a financial advisor.)
