India’s Most Expensive Stock: Elcid Investments surpassed MRF on October 29 to become India’s most valuable stock. Elcid Investments’ stock skyrocketed 67 lakh per cent to Rs 2,36,250 per share on Tuesday. Following the BSE auction for price discovery of holding companies, Elcid Investments’ shares were valued at Rs 2.25 lakh each.

Elcid Investments made history with a record-breaking single-day surge from Rs 3.53 to Rs 2,36,250 apiece. Elcid’s highest traded value reached Rs 4.58 lakh, while the discovered price stood at Rs 2.25 lakh apiece. On the other hand, MRF’s share price on BSE declined 0.39% to Rs 1,22,576.50 lakh per share on October 29.

According to a BSE circular dated October 21, select investment holding companies (IHCs) were to be relisted through a special call auction for price discovery on Monday, with effective rates finalized on Tuesday, October 29. Notably, Elcid Investments was among the select companies.

India’s Most Expensive Stock – What Triggered?

Elcid Investments reportedly holds a 2.95% stake in Asian Paints Ltd, valued at approximately Rs 8,500 crore. According to media reports, this factor alone responsible to the stock’s premium valuation in the market. Despite its steep price of Rs 2.36 lakh per share, Elcid Investments trades at a significant 45% discount to its intrinsic value of Rs 4.25 lakh per share.

It is worth noting that SEBI introduced a proposal in June 2024 to enhance price discovery for Investment Companies (ICs) and Investment Holding Companies (IHCs) through a new mechanism. SEBI observed that several ICs and IHCs are trading at substantial discounts to their book value. To boost liquidity, price discovery, and investor interest, SEBI introduced a “special call auction with no price bands” framework for such companies.

Analysts suggest that investment holding companies’ stock prices are driven by their underlying holdings, posing liquidity risks. The investments in such companies should be based on an individual’s risk tolerance.

(Disclaimer: This stock market news is for informational purposes only and should not be construed as investment advice.)

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