Elcid Investment: A unique incident has happened in the Indian stock market in which a share jumped so high in a single day that it became the most expensive share in the Indian stock market. It has also left behind the country’s most expensive stock MRF. The share price of smallcap stock Alcid Investments increased from Rs 3.53 to Rs 236,250 in a single day. This huge growth seen on the basis of high book value of the company has made Alcid the most expensive stock in India, leaving behind the stock price of MRF.
Alcid created history on Dalal Street
Smallcap stock Alcide Investments recently rewrote Dalal Street history as its share price surged from just Rs 3.53 to Rs 2,36,250 on Tuesday, October 29, a jump of 66,92,535 per cent in a day. A seemingly impossible leap is in sight. Alcide is now India’s highest priced stock as it has crossed MRF share price of Rs 1.2 lakh. In the history of the Indian stock market, such a sharp rise in any share has never been seen or heard before.
Why is Alcide’s case unique?
The case of Alcid is unheard of because this unprecedented rise has been seen in Alcid not on the basis of buying by investors but due to a special call auction for price discovery in investor holding companies organized by the stock exchanges BSE and NSE. Despite this stock being priced at only Rs 3 per share since 2011, the book value of Alcide was quite impressive i.e. Rs 5,85,225. This huge discount has made existing shareholders reluctant to sell, as there has been no trading since 2011.
Why stock exchange organized special call auction
In fact, stock market regulator SEBI had asked stock exchanges to organize a special auction session for holding companies with huge discounts compared to book value. Through this, SEBI’s objective was to reduce the difference between the current market value of such companies and the book value of the holding companies. Some listed investment companies and investment holding companies traded infrequently and at prices well below their book values, similarly Alcid’s counter also saw hardly any trading volume.
How the stock rose by more than 66 thousand percent in one day
Due to the special session, there was fair value discovery in Alcid’s stock, due to which it increased by 6.7 million percent, which is the highest signal day gain till date.
read this also
Government’s festive gift regarding petrol and diesel, it will become cheaper in many states due to a big decision on 7 years old demand.
