Elcid Investments Surpasses MRF as India’s Costliest Share
In a remarkable turn of events, Elcid Investments Ltd, a small-cap company based in Mumbai, has emerged as India’s most expensive share, outstripping even the well-known MRF stock, which is priced at Rs 1.2 lakh. Following its relisting on the Bombay Stock Exchange (BSE) on October 29, Elcid’s stock price surged to an astonishing Rs 2,36,250 per share, a significant leap from its previous value of just Rs 3.21. This remarkable rise pushed the company’s market capitalization to nearly Rs 4,800 crore.
Record-Setting Relisting
The phenomenal increase in Elcid Investments’ stock price was facilitated by a BSE circular issued on October 21, which allowed for the relisting of select investment holding companies (IHCs) through a special call auction mechanism. This approach enabled fair price discovery, resulting in Elcid’s return to the market at a base value of Rs 2,25,000 per share, which climbed an additional 5% by the end of the trading day.
Elcid Investments was not alone in benefiting from this relisting; other investment firms such as Nalwa Sons Investments, TVS Holdings, Kalyani Investment Company, and Maharashtra Scooters also participated in the process. However, Elcid’s remarkable valuation captured significant attention, primarily due to its substantial holdings in one of India’s leading companies.
Value Proposition of Elcid Investments
Elcid Investments is primarily valued for its impressive 2.95% stake in Asian Paints, a holding estimated at approximately Rs 8,500 crore based on recent stock performance. This strategic investment positions Elcid as one of the most valuable entities in the Indian stock market, despite its modest capital base of just 200,000 shares.
The company’s intrinsic value is largely derived from its Asian Paints holding, resulting in a book value of Rs 4.25 lakh per share—substantially higher than its current trading price. This discrepancy indicates that Elcid’s shares are trading at a 45% discount compared to their intrinsic value.
Promoters’ Delisting Attempt
Earlier this year, the promoters of Elcid Investments attempted to delist the company by proposing a buyout at a base price of Rs 1,61,023 per share. However, the delisting proposal failed to garner the necessary approval from public shareholders, allowing the company to remain listed and available for trading. This outcome has opened doors for retail investors and the broader market to engage with this high-value stock.
