Wed Oct 30 16:13:12 UTC 2024: ## Elcid Investment: A Penny Stock Turns into a Crorepati Maker Overnight

**Mumbai:** In a shocking turn of events, the Indian stock market witnessed a phenomenal surge in a penny stock, Elcid Investment Ltd., which skyrocketed by an astounding 66,92,535% in a single day. The share, which traded at ₹3 on June 21st, 2024, closed at a staggering ₹2,36,250 on Tuesday, making it the most expensive stock in India, surpassing even MRF.

The dramatic rise can be attributed to a special stock auction conducted by the Bombay Stock Exchange (BSE) on Monday. This auction was initiated by the Securities and Exchange Board of India (SEBI) to address the difference between holding companies’ market value and book value. The auction led to a significant increase in the share price, which was then listed at ₹2,25,000 on Tuesday.

Elcid Investment, a small-cap company, holds a substantial 2.95% stake in Asian Paints, valued at approximately ₹8,500 crore. This large holding in a blue-chip company is the primary driver behind the exorbitant share price.

Experts caution investors to approach investments in such companies with extreme caution. While the potential for profit is significant, the liquidity risk is also substantial.

**Key takeaways:**

* Elcid Investment’s share price surged by 66,92,535% in a single day, making it the most expensive stock in India.
* The surge was driven by a SEBI-mandated special stock auction that aimed to address the disparity between holding companies’ market value and book value.
* Elcid’s substantial 2.95% stake in Asian Paints is the primary reason behind its high price.
* Investing in such companies carries significant risk due to potential liquidity issues.

**Note:** Financial advice should always be sought before making investment decisions.

Read More