Smallcap stock becomes India's costliest share, turns Rs 3 into Rs 2.36L in a day

In a surprising market move, Elcid Investments Ltd, a smallcap company, has emerged as India’s costliest share, surpassing even the renowned MRF stock priced at Rs 1.2 lakh.

The Mumbai-based company relisted on the Bombay Stock Exchange (BSE) on October 29 and saw its stock price soar to an impressive Rs 2,36,250 per share—an astonishing rise from just Rs 3.21. This surge marked a new high, with the company’s market cap reaching nearly Rs 4,800 crore.

Smallcap stock Elcid Investments’ record-setting relisting

The meteoric rise of Elcid Investments came following a BSE circular issued on October 21, which facilitated the relisting of select investment holding companies (IHCs) through a special call auction mechanism.

This procedure allowed for fair price discovery, and on October 29, Elcid Investments officially returned to the market at a base value of Rs 2,25,000 per share, climbing another 5 percent by the end of the day.

Elcid Investments wasn’t the only company to benefit from this relisting. Other investment companies, such as Nalwa Sons Investments, TVS Holdings, Kalyani Investment Company, and Maharashtra Scooters, also went through the relisting process. However, it was Elcid’s impressive stock valuation that caught significant attention due to its valuable holdings in one of India’s leading companies.

Why Elcid Investments stock is India’s costliest share

The smallcap stock Elcid Investments is primarily valued for its substantial 2.95 percent stake in Asian Paints, a holding valued at approximately Rs 8,500 crore based on Asian Paints’ recent stock performance. This holding makes Elcid one of the most valuable companies on the Indian stock market in terms of share price, even with its modest capital base of 2,00,000 shares.

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The company’s intrinsic value, attributed largely to its Asian Paints holding, positions it at a book value of Rs 4.25 lakh per share—well above its trading price of Rs 2.36 lakh, meaning the India’s costliest share still trades at a 45 percent discount.

Promoters’ failed 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 did not gain the required approval from public shareholders, leaving the company listed and available for trading.

This decision has since provided an opportunity for retail investors and the market to participate in the high-value stock.

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