 "Elcid Investments hits 5% upper circuit after 70,273x jump since Oct 29")
Shares of Elcid Investments were locked in upper circuit of 5 per cent at Rs 2,48,062.50 on the BSE in Thursday's intra-day trade. Since Monday, October 29, when a special call auction was held to discover the price of the stock, it has jumped a staggering 7.03 million per cent higher to become the priciest stock in absolute terms, surpassing the stock price of tyre major MRF. The stock of the non-banking financial company (NBFC) had closed at Rs 2,36,250 apiece on Tuesday, while before the special call auction, on June 21, 2024, the stock had closed at Rs 3.53 on the BSE, exchange data showed.
Till 09:50 AM, only nine equity shares had changed hands and there are pending buy orders for 643 shares on the BSE, data from the exchanges showed.
As on September 30, 2024, Elcid Investments had total outstanding equity shares of 200,000, out of which, 75 per cent, or 150,000 shares, were held by the promoters.
The remaining 50,000 shares, or 25 per cent stake, were held by public shareholders. These include corporates such as Hydra Trading Pvt Ltd (18,082 shares) and 3a Capital Services Ltd (6,682 shares), who collectively held 33,296 shares, or a 16.65 per cent stake in the company. A total of 284 resident individuals held 14,857 shares, or 7.43 per cent holding, in Elcid Investments, shareholding pattern data for the company showed.
The Securities and Exchange Board of India (Sebi) had in June issued a new framework for select investment holdcos to be eligible for the special call auction. The auction did not have any price bands, according to the Sebi directive, to enable price discovery.
On October 14, 2024, in continuation to the SEBI circular, the BSE (Bombay Stock Exchange) had given a 14-day advance notice mentioning the companies eligible for this mechanism. The special call auction took place on October 28, which allowed the company’s price to move freely, enabling its price discovery, Elcid Investments said in an exchange filing on the increase in its share price and volumes.
The company added that it has not withheld any material information or announcement or impending announcement that would have a bearing on the price and volume behaviour of its scrip.
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Therefore, the increase in the share price / volume behaviour of the scrip is purely due to market conditions and are market driven, the company noted.
Elcid Investments is categorised as one of the many 'promoter' entities of Asian Paints. It has a 2.95 per cent stake in the country’s largest paint company, which is valued at almost Rs 8,400 crore.
Holding companies do not have operations of their own but hold stakes in other assets including shares of other listed companies. These firms mostly hold investments in their own group companies.
According to information given on its website, Elcid Investments is an RBI-registered NBFC and its business is to make investments in shares, debentures, mutual funds, etc. The company has two subsidiaries -- Murahar Investments & Trading Company Limited and Suptaswar Investments & Trading Company Limited. Both these subsidiaries are also registered with the RBI as NBFCs.