SYNOPSIS: Elitecon International plans a strategic merger of agro and cryogenic businesses, appointing Deloitte as advisor, aiming to enhance scale, efficiency, balance-sheet strength, and long-term shareholder value.
During Thursday’s trading session, shares of a tobacco manufacturing company surged more than 4 percent on BSE, after the company announced appointing a globally reputed professional services firm, Deloitte, as its advisor for the proposed scheme of merger.
At 12:19 p.m., shares of Elitecon International Limited were trading in the green at Rs. 96.99 on BSE, up by over 1 percent, compared to its previous closing price of Rs. 95.86, with a market cap of Rs. 15,504 crores. The stock has delivered multibagger returns of over 744 percent in one year, and has gained by around 7 percent in the last one month.
What’s the News:
As per the disclosures with the latest stock exchanges, Elitecon International Limited has announced a key strategic move aimed at strengthening its long-term growth trajectory, operational scale and shareholder value creation.
To support this initiative, the company has appointed Deloitte Touche Tohmatsu India LLP, a globally reputed professional services firm, as its strategic tax and regulatory advisor and transaction program manager. Deloitte will assist the company in evaluating, structuring and executing a proposed merger scheme, along with handling the associated regulatory and compliance requirements.
Building on strong business synergies, operational complementarities, and a shared growth vision, the company’s Board is currently evaluating a scheme of merger of Sunbridge Agro Private Limited, Landsmill Agro Private Limited, and Golden Cryo Private Limited with Elitecon International Limited. The proposal remains subject to approvals from statutory authorities, regulators, and the National Company Law Tribunal (NCLT).
The proposed merger is expected to mark a transformational milestone for the company by enabling the consolidation of diversified yet synergistic business verticals. It is also aimed at achieving greater scale, improving operational efficiency, optimising resource utilisation, strengthening the balance sheet, and enhancing long-term earnings visibility – while improving competitiveness and overall market positioning.
Elitecon believes that, once implemented, the proposed transaction will place the company on a much stronger strategic footing, aligned with its long-term objectives of expansion, diversification, and sustainable, responsible growth.
Financials & More:
EIL reported an impressive growth in revenue from operations, experiencing a year-on-year increase of over 539 percent, from Rs. 79 crores in Q2 FY25 to Rs. 505 crores in Q2 FY26. Likewise, its net profit increased during the same period from Rs. 9 crores to Rs. 20 crores, representing a significant rise of nearly 122 percent YoY.
Elitecon International Limited is engaged in the business of manufacturing and trading of all kinds of tobacco, cigarettes, smoking and other products of tobacco and deals in any other articles and things commonly dealt in by tobacconists.
The company operates a 40,000 sq. ft. fully automated manufacturing facility in Nashik, Maharashtra, regarded as one of the most advanced units in India, with a current production capacity exceeding 8 crores cigarette sticks per month.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Merger: Cigarette stock jumps 4% after appointing Deloitte as advisor for proposed merger scheme appeared first on Trade Brains.