Meanwhile, the BSE has placed the stock under the Short Term Additional Surveillance Measure Stage 4 (ST ASM-4) framework.
Shares of multibagger small-cap stock Elitecon International are in focus as the company has shared an update on a major merger. The cigarette and tobacco product manufacturer, in an exchange filing, said it has taken a major step towards expansion. The company has appointed the global professional services firm Deloitte Touche Tohmatsu India LLP as its advisor for tax, regulatory, and transaction management related to the merger. Amid this, the stock started the trading session in green at Rs 96 against the previous close of Rs 95.86 on the BSE. The stock gained further to touch the intraday high of Rs 99.89. However, it later fell amid profit booking and touched a low of Rs 92.50. Last seen, the stock was trading at Rs 95.95, a gain of 0.09 per cent and the market cap of the company stood at Rs 15,337.61 crore
Meanwhile, the BSE has placed the stock under the Short Term Additional Surveillance Measure Stage 4 (ST ASM-4) framework.
The stock’s 14-day relative strength index (RSI) is 41.91. For the uninitiated, a level above 70 is considered overbought or overvalued, and below 30 is defined as oversold or undervalued.
Company plans merger
According to the information shared with exchanges, the board of the company is currently considering a plan to merge with Sunbridge Agro Private Limited, Landsmill Agro Private Limited and Golden Cryo Private Limited. The company said that all necessary statutory and NCLT approvals will be taken.
The company said that this proposed merger is expected to result in the integration of business verticals, improvement in operational efficiency, strengthening of the balance sheet, better stability of earnings and strengthening of the company’s position in the market.
The company believes that this merger will provide Elitecon International Limited with a strong growth platform in the long term.
The stock has delivered a multibagger return of 733 per cent in one year. It has gained over 8,970 per cent in the last three years and over 9,425 per cent in the last five years.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
