INSUBCONTINENT EXCLUSIVE:
This stock quotes at Rs 6 on BSE, pays Rs 15 dividend every year, but does not trade
There are buyers ready to pay 15,000 times its current price, but no sellers
A headache not just for investors, but also for stock exchanges!
Elcid Investment is a microcap company, but it is one of the promoter
entities of bluechip firm Asian Paints, an index stock that traded at Rs 1,522 on Thursday.
Elcid Investment owns over 2.83 crore shares of
Asian Paints, roughly 2.95 per cent stake
At prevailing market price of the Asian Paints stock, that holding is worth over Rs 4,200 crore
But Elcid Investment has a paid-up capital of just Rs 0.20 crore and a market capitalisation just over Rs 0.12 crore.
There has been no
trade on the counter in last eight months.
The stock was last traded on August 9, 2018, when it hit the 5 per cent upper circuit at Rs 5.89
It has been traded only 18 times since 2011
But it has been giving dividends at Rs 15 per share every year.
Investors on Dalal Street are willing to invest in the stock, but no one is
Advisory.
Actual worth of stockArun Mukherjee, Co-Founder of Sebi-registered firm SA Investment Advisers, pegs the value of the stock at
That is how a transaction takes place
In the case of Elcid, it is worth over Rs 1 lakh
No one will sell it for just Rs 6 or so
approached Bombay High Court to intervene in the matter and issue directives to markets regulator Sebi and BSE
announced an offer-for-sale (OFS) in 2013 for a price of Rs 5,000 and the investors who purchased those shares are stuck at Rs 5.89
In 2013, the promoters announced a delisting offer to public shareholders at Rs 11.455 per share, but the offer was rejected.
Chugh says the
laws should be made in line in the interest of minority shareholders
Regulators and exchanges should treat their interest as prime
Many gullible investors may fall for an offer made by the promoters and tender their shares at very less price than their actual value.
What
addressing investor concerns
value and the actual value of the stock is very clear
Exchanges must allow price discovery in such extraordinary cases.
Often, exchanges suspend such stocks for non-compliance of listing
It is the easiest way out for them
in the market for such shares
If anyone is inclined to sell this stock, they can approach these brokers," he said.
In India, there is no law, particularly relating to
