Shares of Elitecon International Ltd are in focus after the cigarette and tobacco products manufacturer shared two key updates in an exchange filing following market hours last Friday. The company, which has a market capitalisation of Rs 8,838.11 crore, informed investors about important decisions taken at its Board of Directors meeting held on February 27.
Update on Sunbridge Agro Acquisition Reversal
The board meeting provided an update regarding the reversal of the proposed acquisition of Sunbridge Agro Private Limited (SAPL).
Elitecon International had entered into a share purchase agreement (SPA) on September 4, 2025, to acquire a controlling stake in SAPL. Under the agreement, the company paid for a 31.25 per cent stake from its internal resources, and the shares were transferred.
The remaining payment was to be funded through proceeds from a proposed Qualified Institutional Placement (QIP). However, the QIP did not materialise, resulting in non-receipt of funds.
Additionally, 44.99 per cent pledged shares were already pledged to SBICAP Securities. The release of these pledged shares was a necessary condition for completing the transaction, but this could not be fulfilled. As a result, that portion of the deal could not proceed.
The company stated that it had already invested a significant amount in SAPL for operational needs, but the absence of QIP funding stalled the entire acquisition process.
Share Price and Market Performance
At last count, Elitecon International shares were trading at Rs 55.29, down 4.98 per cent, or Rs 2.90.
According to BSE analytics data, the stock has declined more than 16 per cent in the past week and over 20 per cent in the past month. It has fallen more than 38 per cent in the past three months and over 81 per cent in the past six months.
However, on a yearly basis, the stock has gained 148 per cent in one year and more than 5,165 per cent over the past three years, making it a notable multibagger despite recent corrections.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
