Shares of Elitecon International Ltd., a cigarette and tobacco product manufacturer, hit the 5 per cent upper circuit on Thursday as stock market benchmark indices Sensex and Nifty bounced back. The stock opened gap up with a gain of 2.42 per cent at Rs 53.80 against the previous close of Rs 52.53 on the BSE. It jumped further to Rs 55.15, to lock in 5 per cent upper circuit. The market cap of the company stood at Rs 8,815.73 crore. The action in the stock comes amid heavy trading activity. According to data available on the BSE, 6,30,444 equity shares of the company had been traded as of the last count.
RSI Indicates Oversold Zone
The stock’s 14-day Relative Strength Index (RSI) stands at 28.14. For the uninitiated, a level above 70 is considered overbought or overvalued, while a level below 30 is considered oversold or undervalued.
Meanwhile, the BSE has placed the stock under the Short Term Additional Surveillance Measure Stage 3 (ST ASM-3) framework.
Update on Proposed Acquisition of Sunbridge Agro
In a regulatory filing, the company said it had entered into a share purchase agreement (SPA) on September 4, 2025, to acquire a controlling stake in Sunbridge Agro Private Limited (SAPL).
Under the agreement, the company paid for a 31.25 per cent stake using its internal resources, and the shares were transferred to the company. The remaining payment was planned to be made from the proceeds of a proposed Qualified Institutional Placement (QIP). However, the QIP did not materialise, resulting in the non-receipt of funds.
Additionally, 44.99 per cent pledged shares were already pledged to SBICAP Securities. Their release was a necessary condition for the transaction, but this requirement could not be fulfilled.
As a result, this portion of the shares could not be transferred to the company, and that part of the transaction could not proceed.
The company had already invested a significant amount of funds in SAPL for operational requirements, but the absence of funds from the proposed QIP stalled the entire acquisition process.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
