Melody effect: Wrong 'Parle' stock hits 5% upper circuit for 4th day, up 21% since PM Modi's gift for Meloni

As social media buzz around Prime Minister Narendra Modi’s ‘Melody’ gift to Italian counterpart Giorgia Meloni continues, investors appear to be sweetening the wrong stock. Shares of infrastructure and real estate firm Parle Industries hit the 5% upper circuit for the fourth straight session on Monday, amid possible confusion with the unlisted FMCG giant Parle Products.

During his recent visit to Italy, PM Modi gifted a bag of ‘Melody’ candies to his Italian peer. The Italian PM shared a video of their interaction on social media, which has now gone viral, over the gifting of candies that suggest a fun play on both the Prime Ministers’ surnames. In the video, she described it as a “very, very good toffee.”

— GiorgiaMeloni (@GiorgiaMeloni)

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. Capitalising on the moment, Parle Products shared the video on Instagram with the caption, "Sweetening relationships since 1983."

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 company expects "a lot of traction in domestic and international sales" following the viral moment, Shah further said.

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 have surged more than 21% since the viral ‘Melody’ moment. The shares jumped 5% to hit the upper circuit for the fourth consecutive session at Rs 6.06 apiece on Monday.

The company currently has a market capitalisation of nearly Rs 30 crore.

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