Surprising Facts!! Confusing Stock

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ELCID INVESTMENT LIMITED


Seeking huge interest of petty investors this stock has its own story.
A Microcap company founded in 1981 at Mumbai. It eventually got listed over BSE.

The company is making a decent profit over the years and capable of providing  Rs 10-15/- per share on an annual basis. It has a total quantity of  2 Lakh shares out of which 74.88% are held by promoters and remaining with the public.



Now, this company is holding a 2.95% stake of leading paint company Asian Paints ( NSE : ASIANPAINT) which according to current market price means company is holding approx  4813 Crore 
value in its asset column and cash reverse is also healthy. So calculating value of per share
 (i.e. - 4813 crore / 2 lakh ) is about Rs 2,40,667/- but irony is share of Elcid investment is trading at  Rs 10/- 
which makes its market capitalization of just Rs 2 Crore.



Due to this huge divergence in price, it attracted many investors but no seller is available at this price because everybody wants its real value.
In March 2013 promoters thought to delist the company at an offer price of Rs. 11455/- per share but their idea was drop out because no one was ready to sell at even this price also. Then according to SEBI rule promoters can't have stake more than 75% but at that time they have therefore OFS was announced at a price of Rs. 5000/- per share and promoters sold quantity of 9500 but after that, this investors also got stuck in the stock.
The stock has traded only 23 times till now in the last 5 years. It was last traded on 22 July 2020.

 Currently, investors are approaching SEBI to look into the matter and calculate the fair value of share via call auction. But until no resolution is provided.


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