Synopsis:
Sellwin Traders Ltd surged after announcing a strategic MoU with Dubai-based Global Market Insights IT Services LLC, acquiring a controlling stake of over 51 percent for about USD 1 million (Rs. 8.5 crore). The stock opened at its upper circuit of Rs. 9.95, marking a 2 percent rise from the previous close.
An IT and diversified services penny stock was in focus as it moved into a high-growth sector through an overseas acquisition. The company aims to expand in digital solutions across the Gulf region while strengthening long-term returns for investors.
Sellwin Traders Ltd, with a market capitalization of Rs. 228.77 crore, opened at Rs. 9.95 on Thursday, the same as its intraday high and 2 percent above the previous close of Rs. 9.76. The stock hit its upper circuit at the opening trade.
What’s the News?
Sellwin Traders Ltd entered into a Memorandum of Understanding (MoU) with Global Market Insights IT Services LLC (GMIIT), Dubai, to establish a strategic business partnership in the Gulf region. As part of the agreement, Sellwin will acquire more than 51 percent equity in GMIIT for about USD 1 million (approximately Rs. 8.5 crore), making it a subsidiary.
The collaboration aligns with Sellwin’s diversification strategy, enabling expansion into IT services, consulting, market research, and digital solutions. GMIIT is a tech firm specializing in Artificial Intelligence, Blockchain, Cybersecurity, and Digital Marketing. The MoU is valid for six months or until a definitive agreement is executed. Sellwin expects a return on investment of 7 percent or higher annually.
Additionally, the board has approved raising funds through the allotment of up to 4.75 crore warrants at a minimum price of Rs. 8.40 per warrant to fund expansion initiatives. Under the partnership terms, Sellwin will appoint majority directors to GMIIT’s board, with key management roles jointly decided.
The proposed investment by Sellwin Traders Limited could take the form of cash, in-kind contribution, or a share swap arrangement, depending on mutually agreed terms. The deal will be subject to thorough financial, legal, and operational due diligence of GMIIT and executed in accordance with relevant corporate, forex, and securities regulations in India and the UAE.
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Management Commentary
Commenting on the development, Mr. Monil Vora, Director, Sellwin Traders Limited, said, “This strategic investment in GMIIT reflects our vision of expanding into high-growth, future-ready sectors.
The Gulf region is a hub of digital transformation, and through this partnership, we aim to create a strong platform for delivering innovative IT and consulting solutions to global clients. GMIIT is providing the service and having the associated platform in India, Qatar, Canada, UK and KSA.”
Financial Snapshot
On a quarter-on-quarter basis, revenue declined 11.2 percent to Rs. 21.85 crore in Q1FY26 from Rs. 24.61 crore in Q4FY25. Profit before tax rose sharply by 380.3 percent to Rs. 3.41 crore from Rs. 0.71 crore, while net profit surged 528 percent to Rs. 3.14 crore from Rs. 0.50 crore.
On a year-on-year basis, revenue increased 31.3 percent to Rs. 21.85 crore in Q1FY26 from Rs. 16.64 crore in Q1FY25. PBT grew 283.1 percent to Rs. 3.41 crore from Rs. 0.89 crore, while net profit climbed 348.6 percent to Rs. 3.14 crore from Rs. 0.70 crore in the same quarter last year.
About the Company
Sellwin Traders Ltd is engaged in a diversified set of businesses, including real estate and property services, investment and trading in shares and securities, financial services, and advisory. The company is actively pursuing growth opportunities through strategic investments and partnerships.
Written by – Manan Gangwar
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