Wed Oct 30 15:00:09 UTC 2024: ## Penny Stock Surges 67,000 Times in a Single Day, Becoming India’s Most Expensive
**Mumbai, October 30:** In a stunning turn of events, the share price of little-known penny stock Elcid Investments skyrocketed nearly 67,000 times in a single trading session, becoming India’s most expensive stock. The stock, which had been frozen at ₹3.53 since June, closed at a record-breaking ₹2.36 lakh on October 29, surpassing even tyre giant MRF.
The surge was triggered by a special call auction session conducted by the exchange for select investment holding companies, including Elcid Investments. This session was mandated by the Securities and Exchange Board of India (SEBI) to address the significant gap between the market value and book value of these companies.
“Elcid’s book value per share stood at ₹5,85,225 despite a very low share price for a long time,” said Raj Gaikar, research analyst at SAMCO Securities. “The company holds a 2.83% stake in Asian Paints, valued at almost ₹8,500 crore, which makes its stock richly priced.”
The auction session resulted in a “fair value discovery” of Elcid’s price, according to analysts. However, experts caution that such dramatic price movements are unusual and highlight the inherent risks associated with penny stocks.
Despite its astronomical market value, Elcid Investments remains a relatively small company, with a total market capitalization of just ₹4,725 crore. The company, a non-banking financial company (NBFC), holds a 200,000 share equity base, with 75% controlled by promoters.
This unprecedented event serves as a reminder of the volatility and unpredictable nature of the stock market, especially for penny stocks, which often attract retail investors hoping for quick gains.
First Piper 