9,00,000% Premium in Unlisted Share Market !
9,00,000% Premium in Unlisted Share Market !
When this stock was last traded on June 15, 2020, it reached a high of 5 per cent at 9.09 rupees. According to the data from BSE, it has been traded only six times in last one year. Today, its quotation in the unlisted market is 80,000 rupees per share, seeking a premium of 9,00,000 per cent!
The unlisted market is the place where delisted, illiquid and rarest of rare stocks gets traded unofficially at a premium price. But the question is, how much premium are investors willing to pay for this type of stocks?
Elcid Investments Limited is a micro cap company and its financial situation is not so magnificent. The only fact of counter is that it is one of the promoters of the blue chip company Asian Paints. In addition, the company has been paying an annual dividend of Rs 15 per share since financial year 2017.
Mr. Sambhav Aggarwal of Arms Securities, a firm that deals in unquoted, delisted and illiquid shares, has said in his statement on Monday (July 20), “It is a very thinly-traded stock and people opt for off-market trade for it. Price of this share is directly linked to the share price of Asian Paints.”
“Usually, HNI investors fancy it. We get a lot of queries for the stock. But considering the huge spread between buyer price and seller price, only scanty trades take place,” he further added.
A data from BSE shows that Elcid Investments Ltd had a total of 2,00,000 shares in circulation. Public shareholders had 50,250 shareholders and the remaining 1,49,750 shareholders were promoters, as of June 30, 2020.
The first company owns more than 2.83 crore Asian paint shares. At current market prices, the value of these shares exceeds Rs 4,900 crore. However, the market capitalization of Elcid Investment is slightly higher than Rs 0.18 crore.
Some market experts say that one share of Elcid is worth more than Rs 2.4 lakh, so even at its current unlisted market price, the stock has a discount of only two-thirds.
Mr. Sunil Chandak of Gennext Investrade, another firm that also deal in unlisted shares, has said that it is a well known fact that holding companies usually trade at huge discounts and Elcid is not an exception.
He further said, “Elcid has been the talk of the town because of its extremely low price on the stock exchanges. There are many holding companies of reputed corporate houses, whose shares trade in the listed and unlisted markets at a higher discount than Elcid.”
To Buy Shares of Elcid Investments Limited, kindly visit at https://www.armssecurities.com/elcid-investments-limited-unlisted-shares/
To Buy Shares of Inox Leasing and Finance Limited, kindly visit at https://www.armssecurities.com/inox-leasing-finance-ltd/
