However, this high price is actually happening due to the low float stock and one has to be wary of such stocks as demand is more and supply is less and imagine if it was otherwise.
At present, the promoter group owns 99.03% (Patanjali 98.87%) of the company which is in lock-in for 3 years. There are only 28,59,318 shares which are available for trading in the open market. These are held by 82,000 shareholders.
The move has been on a very thin volume with average trading volume at 10-15k shares. Therefore, this is a classic example demand and supply mismatch meaning that the demand for its share is more whereas supply is limited leading to a sharp surge.
Thus before investing in a stock you must always see that whether it pass your volume criterion. As a thumb rule minimum of 1 Lakh volume is recommended.
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