Now the most expensive share in the country is that of Alcid Investment. It is a non-banking finance company registered with RBI, which is part of the promoters group of a company like Asian Paints. Have you ever wondered why you are not able to buy shares of promoter group companies like Alcid when their price is only between Rs 3 or 3.5.
Recently, when the stock call auction method was adopted for price discovery of Alcide’s share, its share price directly increased from Rs 3 to Rs 2.36 lakh. In this way the value of its investors’ shares increased by 67,00,000 percent. Even on Wednesday, the price of one share remained above Rs 2.85 lakh, whereas in the last few days it has gone up to Rs 3.35 lakh per share.
What is Promoter Group Company?
When the person raising money for a company or business is not an individual but a company or organization, then it is considered a part of the promoter group company. There can be many promoter group companies among the investors of any company. Promoters of group companies receive shares in the company in return for their investment, which are then given to them as their share in the capital.
Generally, a promoter group company is formed by a person who is the promoter of the company in which he has invested. For example, in the case of Alcid Investment, the family of Abhay Vakil, who was one of the early directors of Asian Paints, owns 75 percent of it. Similarly, Tata Family Trusts hold 66 percent stake in Tata Sons, the holding company of Tata Group.
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In such a situation, the value of shares of promoter group companies like Alcid Investment remains just like a penny stock, because there is no trading in them. Due to this, demand-sale-supply-delivery etc. of that share is not carried out and its shares remain in their place.
Stock call auction started
Now the stock exchanges have developed a method like stock call auction for such promoter group companies. Its purpose is to find out the true value of the shares of such companies listed in the stock market. This has happened with Alcid Investment and in the coming days, share listing of Tata Sons can also be seen.
See also: What is special call auction? Due to which Rs 3 share became the most expensive stock in the country.
Why can’t you buy their shares?
Now if we ask why the common man is not able to buy shares of these companies, then there are many reasons for it. Most of the shares of companies like Alcide Investment are not available for trading. The lot size of these shares is very small and the price is high, hence the common man is not able to buy them.
If we look at the shares of Alcid Investment only, then on the day of share price discovery, it had only 328 exclusive shareholders. Whereas only 322 shareholders of the company were public. Even on Tuesday, only 904 shares of the company were traded.
Must read:Price of one share is Rs 3 lakh, yet Elcid stock is cheap!
