Elitecon International Ltd.ELITECON₹93.34 +4.99%

Shares of Elitecon International Ltd. hit the 5% upper circuit, surging to ₹93.34 after the company announced that its board has approved the acquisition of Prime Place Spices Trading L.L.C, a Dubai-based FMCG trading company, as part of its international expansion strategy. The acquisition will be executed through a combination of cash and share swap, with a total deal value estimated at ₹700 crore. The transaction includes a cash consideration of ₹300 crore and a share swap component of up to ₹400 crore.

Acquisition Highlights

Founded in 2007, Prime Place is engaged in the trading of spices, dry fruits, coffee, tea, confectionery, and related products. The company reported a turnover of AED 160.15 million for the year ended December 31, 2024, marking consistent growth over the past three years. 

Elitecon stated that the acquisition aligns with its strategic intent to build a global presence in the FMCG space and complements its domestic operations in the agro commodities segment. It added that Dubai’s status as a key global trading hub makes this acquisition geographically significant. 

Fundraising Plans

In addition to the acquisition, the board has approved a fundraise of up to ₹300 crore through a Qualified Institutions Placement (QIP). The company also plans to issue equity shares on a preferential basis under applicable SEBI and FEMA regulations. 

To obtain shareholder approval for these resolutions, Elitecon has scheduled an Extraordinary General Meeting on August 6, 2025. 

Elitecon noted that the proposed moves are aimed at strengthening its capital base and positioning the company for long-term international growth, particularly in high-demand FMCG categories. 

Over the last three years, Elitecon has given multibagger returns of more than 8,785%.

Note: The stock price mentioned is as of 3:30 PM.

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