One stock surprised everyone in the stock market with its stunning rise in just one day. The stock rose 66,92,535% in a single day, with the share price rising from Rs 3 to Rs 2,36,000. The stock price of 3 rupees suddenly exceeded 2.36 lakh rupees. What happened? The stock made investors millionaires overnight.
The stock has traded only once in 2024 on June 21, at Rs 3.53 per share, with only 500 shares exchanged. On Tuesday, its share price suddenly jumped to Rs 2,36,250 with 241 shares traded. At Rs 2.36 lakh per share, it is now the most expensive stock in India, surpassing MRF’s price of Rs 1.20 lakh.
India’s most expensive stocks
The small-cap stock that outperformed MRF stock was Elcid Investment Ltd Share, which re-listed on the BSE on Tuesday, October 29, at Rs 2,25,000, but saw an intraday rise of 5 per cent to touch Rs 1,000 crore. 2,36,250, taking its total market capitalization to approximately Rs 4,800 crore.
How did this miracle happen?
The big question now is, how can the value of a stock increase by 6.7 million% in one day? There is no fraud anywhere. But this is not evident in Alcid’s case as it was listed only on SEBI’s orders. On Monday, the Bombay Stock Exchange announced the results of a special share auction held to determine the value of the company’s shares. The company’s shares rose during the auction, with the stock listed at over Rs 2 lakh.
To narrow the gap between the current market capitalization and book value of these special share auction holding companies, SEBI has asked the exchanges to conduct auctions at a steep discount. Alcid currently has a market capitalization of Rs 4,725 and owns 1.28% stake in Asian Paints.
Notice issued on October 21
In a notification issued by the Bombay Stock Exchange on October 21, Zeng said that on Monday, selected investment holding companies will be relisted through a special auction to decide the price of the company’s shares. The effective exchange rate will be settled on Tuesday, October 29, after special terms come into effect. Alcide Investments is one of them.
Why are stocks so expensive?
Alcid Investments, with a share capital of Rs 200,000 Cr, holds 2,83,13,860 shares or 2.95% stake in Asian Paints Ltd, which was valued at approximately Rs 8,500 crore as of last close. This is the only reason why the stock is selling at such a high price on the stock market.
Investment funds are riskier
Kranthi Bathini, director of equity strategy at Wealthmills Securities, said such companies are in the business of holding shares in other companies to determine share prices for investors. Investing in such companies depends entirely on one’s risk appetite, but it should be remembered that these companies may be subject to liquidity risks.
(Note – Always seek help from a financial advisor before investing in any stock.)