Parle Industries Stock Surges Amid Name Confusion Linked to PM Modi
Parle Industries hits upper circuit amid ‘Melody’ confusion
Image: The Economic Times
Parle Industries, formerly known as Parle Software, saw its stock price surge by 5% after a social media video mistakenly linked it to the popular 'Melody' candy brand, owned by the unlisted Parle Products. This mix-up led to a significant increase in trading volume, with over 8.57 lakh shares exchanged on the Mumbai stock market.
- 01Parle Industries' stock price reached ₹5.25 after a 5% increase, hitting the upper trading limit for the day.
- 02The company reported a revenue of ₹4.68 crore and a net profit of ₹45.7 lakh for FY25.
- 03Trading volumes surged to over 8.57 lakh shares, nearly three times the average daily volume of 2.8 lakh shares.
- 04Similar name confusion has previously led to trading errors, such as investors mistakenly buying shares of LG Balakrishnan instead of LG Electronics India.
- 05The phenomenon of name confusion is common among stocks, especially during periods of high market activity.
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On Wednesday, shares of Parle Industries, previously known as Parle Software, surged by 5% to reach ₹5.25 after a social media video featured Prime Minister Narendra Modi giving a 'Melody' toffee to Italian Prime Minister Giorgia Meloni. This led to a mix-up among investors who mistakenly associated Parle Industries with the popular candy brand owned by the unlisted Parle Products. The trading volume for Parle Industries spiked dramatically, with over 8.57 lakh shares traded, nearly three times its usual daily volume of 2.8 lakh shares. The company reported a revenue of ₹4.68 crore and a net profit of ₹45.7 lakh for the fiscal year 2025. Such name-related trading errors are not uncommon; a similar incident occurred in 2025 when investors confused shares of LG Balakrishnan with LG Electronics India. This pattern is often seen during news-heavy days when retail investors rush to buy stocks, leading to accidental purchases of similarly named shares.
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The sudden rise in Parle Industries' stock price may lead to increased investor interest and trading activity in penny stocks, influencing market dynamics.
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