Upper Circuit Alert: Sellwin Traders Ltd Enters Strategic Partnerships Across Logistics, Container Manufacturing and Wellness Sectors

Sellwin Traders Limited has undertaken multiple strategic initiatives to expand its presence across Logistics, manufacturing, infrastructure and wellness sectors through equity-linked partnerships, share swap arrangements and funding support.

On 16 January 2026, the company entered into a Memorandum of Understanding (MOU) with Myzek Logistics Pvt Ltd, an emerging player in app-based, eco-friendly last-mile logistics operating under the brand “Dropon”. Myzek currently manages BTB and BTC deliveries for manufacturers and e-commerce service providers including JioMart, Zomato and Blinkit across Ahmedabad, Gandhinagar and Surat. The platform has over 68,000 registered users and has completed more than 5.03 lakh deliveries. Myzek projects revenues of approximately Rs 15.50 crore for FY26 with expansion plans into Tier-2 markets and adoption of sustainable delivery technologies.

Under the MOU, Sellwin Traders plans to initially acquire up to 20 per cent equity in Myzek Logistics with the option to increase its stake to 35 per cent in phases, subject to valuation, due diligence, regulatory approvals and definitive agreements. The deal may be structured through a share swap at Rs 15 per share of Sellwin Traders, against the current market price of Rs 8.93 per share. Further, Sellwin may provide funding support of up to Rs 5 crore via a convertible instrument to aid fleet expansion, technology upgrades and operational scale-up. This association aligns with Sellwin’s strategy of entering scalable and futuristic mobility domains, while strengthening Myzek’s capital access and growth momentum. The MOU remains non-binding and subject to formal approvals.

In a separate development, Sellwin Traders and Patel Container India Private Ltd (PCIPL) have progressed towards a definitive Strategic Association and Share Swap Agreement for Sellwin’s proposed 36 per cent investment in PCIPL’s container manufacturing project near Bhavnagar, Gujarat. This follows an initial MOU signed in 2024. The project recently achieved a major financing milestone with State Bank of India sanctioning a term loan of Rs 20 crore on 18 October 2025. Sellwin will receive equity representing 36 per cent stake in PCIPL in exchange for issuing its own equity shares to PCIPL or nominated entities. As agreed, Sellwin shares issued will not be priced below Rs 15 per share.

Earlier, Sellwin Traders also signed an MOU with Kumkum Wellness Private Ltd (KWPL), which operates under the brand “KAYAPALAT”. Sellwin intends to acquire an initial 36 per cent equity stake in KWPL, with an option to increase its holding to 60 per cent within 18 months based on valuation, due diligence and statutory approvals. The parties target execution of definitive agreements by 31 December 2025. The phased acquisition framework reflects Sellwin’s confidence in the long-term prospects of India’s wellness segment.

Financially, Sellwin Traders recorded strong performance in FY26 to date. For the quarter ended September 2025, net profit stood at Rs 2.72 crore versus Rs 83 lakh in the previous year period, up 227 per cent year-on-year. Revenue from operations in Q2FY26 was Rs 14.68 crore. For H1FY26, the company posted net profit of Rs 5.86 crore versus Rs 1.53 crore in H1FY25, a growth of 283 per cent year-on-year, while revenue rose 13.2 per cent to Rs 36.53 crore against Rs 32.25 crore in the corresponding period.

The Board of Directors, at its meeting on 5 July 2025, approved 50,35,000 equity shares at Rs 5.50 per share under a preferential issue to non-promoter investors. Subsequently, on 13 September 2025, a further 49,35,000 shares were allotted at the same terms. During Q2FY26, the company received Rs 306.46 lakh from these allottees.

On the global front, Sellwin Traders entered into an MOU on 23 August 2025 with U.S.-based Shivam Contracting Inc. (SCI) to form a strategic equity-linked partnership. Sellwin may invest up to USD 6 million (approximately Rs 52 crore) to participate in SCI’s ongoing and future Construction and infrastructure projects across the United States. Under the terms, Sellwin can acquire a 60 per cent stake in SCI via issuance of shares priced not less than Rs 18 per share. The MOU is valid for 12 months. SCI commits to repatriating invested funds to India within two years of each tranche, offering a minimum guaranteed return of 7 per cent per annum. Pursuant to the MOU, Sellwin may initially invest up to USD 3 million (approximately Rs 26 crore), reinforcing a calibrated approach to global expansion through equity-led alliances.

The stock price has given 230 per cent multibagger returns from its 52 week low.

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