Elcid Investment, a Mumbai-based financial firm, has overtaken MRF to become the costliest stock in the country. But what has caught the attention of investors is the extraordinary returns the stock has delivered in the past months.

What Happened: The stock has gone viral among investors and on the internet for its multi-bagger returns in the past six months.

What’s further interesting is that Elcid Investment which is currently trading at a whopping ₹2,36,250 a share was just a penny stock until a few months ago. As of June 21, the company’s shares were priced at around ₹3.53 each. The steep rally in its shares comes after the stock was re-listed on the BSE on Tuesday. This was after the BSE conducted a special call auction on October 28 for price discovery for investment holding companies.

Before the special session, the Elcid shares had barely seen any exchange of hands in the last few years as there were mostly no sellers.

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In June, the Securities and Exchange Board of India introduced a new mechanism aimed at enhancing the price discovery for Investment Companies (ICs) and Investment Holding Companies (IHCs) to bridge the gap between their current market values and book values.

Elcid was reportedly one of several companies, including Nalwa Sons Investments, TVS Holdings, and Kalyani Investment Co., to undergo the re-listing process.

A user on the social media platform X deduced that an investment of ₹1 lakh would have generated returns amounting to a remarkable ₹670 crore over a few months. The current rally has now taken the company’s total market capitalisation to ₹4,725 crore.

Elcid Investments is a registered Non-Banking Financial Company (NBFC) under the investment company category with the Reserve Bank of India (RBI). Although the company does not operate its own business activities, it holds substantial investments in prominent companies such as Asian Paints. Its stake in the company is worth over ₹8,000 crore.

Price Action: Elcid share price was trading 5% higher at ₹2,36,250 on Wednesday afternoon.

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