Upper Circuit Alert: Sellwin Traders Announces Multiple Strategic Deals; Share Price Hits 5% Upper Circuit

Sellwin Traders Ltd (STL) has entered into a memorandum of understanding with Kumkum Wellness Pvt Ltd (KWPL), the company behind the wellness brand “KAYAPALAT.” Under this agreement, Sellwin Traders will initially acquire a 36 per cent equity stake, with an option to increase its holding to 60 per cent within 18 months. The companies plan to finalise definitive agreements by December 31, 2025, subject to due diligence, valuation, statutory approvals, and compliance requirements. This MoU establishes a structured path for STL to strengthen its position in the wellness market.

At its board meeting on July 5, 2025, Sellwin Traders approved a preferential allotment of 50.35 lakh equity shares at Rs 5.50 each to non-promoter investors. A second tranche of 49.35 lakh shares was issued on September 13, 2025 under the same pricing. The company received Rs 306.46 lakh from these issuances during Q2 FY26, enhancing its capital base.

For Q2 FY26, Sellwin Traders reported a net profit of Rs 2.72 crore, compared to Rs 83 lakh in the year-ago quarter, registering a 227 per cent rise. Revenue from operations for the quarter stood at Rs 14.68 crore. In H1 FY26, the company posted a net profit of Rs 5.86 crore, up 283 per cent from Rs 1.53 crore in H1 FY25. Revenue for the six-month period increased to Rs 36.53 crore from Rs 32.25 crore, indicating steady operational performance.

On August 23, 2025, STL signed an MoU with US-based Shivam Contracting Inc. (SCI), a Construction and infrastructure services company. As per the agreement, STL plans to invest up to USD 6 million (approximately Rs 52 crore) in SCI’s projects, with an option to acquire a 60 per cent equity stake. SCI will repatriate the invested funds to India within two years of each tranche at a minimum assured return of 7 per cent per annum. Sellwin Traders may initially invest up to USD 3 million (Rs 26 crore), structured through equity exchange at a share price not lower than Rs 15, subject to valuation.

Further expanding globally, Sellwin Traders signed an MoU on August 21, 2025 with Dubai-based Global Market Insights IT Services LLC (GMIIT) to acquire over 51 per cent equity for USD 1 million. After completion, GMIIT will become a subsidiary of Sellwin Traders. The investment will support STL’s growth in the Gulf region across IT services, AI solutions, consulting, digital marketing, and application development. The transaction may be completed through cash, in-kind contributions, or share swaps based on due diligence and regulatory clearances.

GMIIT is a technology solutions provider specialising in Artificial Intelligence, Blockchain, Cybersecurity, Website development, Digital Marketing, and Application development. The partnership will enable STL to utilise GMIIT’s expertise and expand its digital capabilities.

On Monday, Sellwin Traders’ share price increased by 5 per cent and hit the Upper Circuit following the announcement of the Kumkum Wellness stake acquisition. The stock has delivered multibagger returns of 111 per cent in 2025.