Picked wrong Melody? Parle Industries shares hit 5% upper circuit for 3rd day

Synopsis

Parle Industries shares hit the 5% upper circuit for the third straight session after investors mistakenly linked the stock to Melody toffees gifted by PM Narendra Modi to Italy’s Giorgia Meloni. The viral social media moment sparked confusion between listed Parle Industries and unlisted FMCG giant Parle Products, fuelling a sharp rally in the microcap stock.

While William Shakespeare in his poetic verse wrote "What's in a name", markets seem to prove that "Everything is in the name". The shares of infrastructure and real estate company Parle Industries jumped another 5% on Friday, hitting the upper circuit for the third consecutive session after Prime Minister Narendra Modi gifted his Italian peer Giorgia Meloni a bag of 'Melody' toffees, made by the unlisted FMCG company Parle Products.

During his visit to Italy, PM Modi gifted a bag of candies to his Italian counterpart. The Italian PM shared a video of their interaction on social media, which has now gone viral. In the video, she described it as a “very, very good toffee.” While social media went into a frenzy over PM Modi gifting PM Meloni a bag of ‘Melody’, investors sweetened the wrong 'Parle' stock.

Mumbai-based Parle Industries is associated with developing infrastructure and real estate projects, along with managing paper waste recycling operations. The company has no connection with its namesake Parle Products, which makes the popular Parle-G biscuits and other products, including the melody toffee.

Parle Products is one of India’s oldest consumer goods companies. The viral moment also spilt into corporate branding campaigns, with Air India posting on X, “Some places don’t need introductions, just the right melody,” underscoring how the Modi-Meloni Melody exchange quickly evolved from a diplomatic gesture into a marketing moment for Indian brands.

In an interview with CNBC-TV18, Parle Products Vice President Mayank Shah said that Melody is already exported and available in 100 countries. He added that PM Modi's gesture was a nice way of pushing Indian products and giving a global stage.

The Melody moment also came at a time when there were speculations that Parle Products was in early-stage talks for a potential initial public offering. Modi's Meloni gift could have been a great global roadshow before aiming for D-Street entry. However, Parle Products management told CNBC-TV18 that it is not considering listing on exchanges right now.

Parle Industries share price

Parle Industries shares jumped 5% to Rs 5.78 apiece on BSE on Friday to hit the upper circuit for the third consecutive session. The microcap company has seen its share price rally 16% in just three sessions after the viral 'Melody' moment.

The company currently has a market capitalisation of more than Rs 28 crore.

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