Elcid Investments: A Curiosity of the Stock Market with Spectacular Value Growth

The financial world is astounded by India, where the stock of Elcid Investments is experiencing an unprecedented surge. Thanks to a rule change by the Indian Securities and Exchange Board (SEBI), a special price determination was conducted, catapulting the stock's price into the stratosphere. Within a week, the stock saw a remarkable 70,000-fold increase, reaching a trading value of over 248,000 rupees. This rise even overshadows the spectacular surges of American meme stocks in 2021. By comparison, Elcid's stock began its ascent at just 3.53 rupees. Elcid Investments, a relatively unknown company based in Mumbai, is now the most expensive listed stock in India in terms of absolute price value, surpassing even the previous leader MRF. Nevertheless, the value of Elcid shares remains below book value, which is estimated at over 406,000 rupees per share. The price jump was enabled by a special auction held by the stock exchange to correctly determine the price of stocks that are difficult to trade. These mechanisms were introduced to minimize large discrepancies between market price and book value of such companies and to stimulate more investor interest. Curiously, the current price of Elcid shares corresponds to the previously set minimum price established during a failed attempt to privatize the company in 2022. The owners, who hold 75% of the company, were unable to convince enough minority shareholders to accept their offer at that time.