All-time high stock Locked in 5% Upper Circuit: Only buyers in this multibagger stock under Rs 90, Company Approves Rs 700 Crore Overseas Acquisition and Rs 700 Crore Capital Raise

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All-time high stock Locked in 5% Upper Circuit: Only buyers in this multibagger stock under Rs 90, Company Approves Rs 700 Crore Overseas Acquisition and Rs 700 Crore Capital Raise

The stock has given multibagger returns of 7,231 per cent from its 52-week low of Rs 1.10 per share.

Elitecon International Limited, a Small-Cap FMCG and tobacco-focused company, announced several major decisions from its Board of Directors meeting held on July 9, 2025. The company approved a Rs 700 crore acquisition and additional capital-raising initiatives totalling Rs 700 crore to support its international expansion and diversify its product portfolio.

The Board approved the acquisition of Prime Place Spices Trading L.L.C., a Dubai-based company incorporated in 2007. The entity specialises in the trading of spices, nuts, coffee, tea, confectionery, and chocolate. It reported revenue of AED 120.01 million in 2022, AED 135.11 million in 2023, and AED 160.15 million in 2024. Elitecon plans to acquire 100 per cent of the shareholding (300 shares of AED 1,000 each), at a total estimated cost of Rs 700 crore—split into Rs 300 crore in cash and Rs 400 crore via a swap of shares. The acquisition is expected to close within six months and will be executed under the Automatic Route of FEMA, 1999, pending UAE regulatory approvals.

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In parallel, the Board approved a Qualified Institutions Placement (QIP) of equity shares worth up to Rs 300 crore. Additionally, a Preferential Issue of Rs 400 crore worth of shares will be issued for consideration other than cash, specifically to Mr. Santosh Sharma—the Ultimate Beneficial Owner (UBO) of Prime Place Spices Trading L.L.C. Mr. Sharma will receive 72,727,273 shares, resulting in a post-preferential issue holding of around 4.24 per cent. .

To secure shareholder approvals, Elitecon has scheduled an Extra Ordinary General Meeting (EGM) for August 6, 2025, at its South Delhi registered office. 

On the market front, Elitecon International Ltd closed at Rs 88.90 on July 9, locked in 5 per cent upper circuit. The company has delivered multibagger returns, with gains of 48.27 per cent in one month, 139.11 per cent in three months, and 677.8 per cent over the last six months. As of the latest trade, its market capitalisation stood at Rs 14,210.67 crore. The stock has given multibagger returns of 7,231 per cent from its 52-week low of Rs 1.10 per share.

Initially incorporated as Kashiram Jain and Company Limited in 1987, the firm rebranded and shifted its focus in 2021 towards tobacco products like cigarettes, sheesha, and smoking mixtures under brand names such as “Inhale,” “Al Noor,” and “Gurh Gurh.” It operates in several global markets including the UAE, Singapore, Hong Kong, and the UK.

The company’s recent strategic steps indicate its intention to evolve from a regional tobacco player into a global FMCG contender with diversified offerings.

Disclaimer: The article is for informational purposes only and not investment advice.