Back-to-back Upper Circuit: Sellwin Traders to Invest up to $6 Million in Shivam Contracting Inc.

Sellwin Traders Limited announced two Memorandums of Understanding (MOUs) as part of a major twin plan for international expansion. With investments in the US and Dubai, these strategic equity-linked partnerships support the company's growth-centric goal and strive for faster value development.

Major Investment in the US Infrastructure Sector:

Sellwin Traders Limited has signed an MOU with Shivam Contracting Inc. (SCI), a U.S.-incorporated corporation engaged in construction and infrastructure projects.

• Investment Details: Sellwin Traders Ltd. has agreed in principle to invest up to USD 6 million (approximately ₹52 crore) to participate in SCI’s ongoing and future projects across the United States. This investment is intended to secure a 60% equity stake in Shivam Contracting Inc..
• Acquisition Consideration: The acquisition consideration will be settled via the issuance of shares by Sellwin Traders Limited at an agreed rate, which should not be less than ₹18 per Share.
• Financial Safeguards: Shivam Contracting Inc. commits to ensuring attractive risk-adjusted gains for Sellwin shareholders, with a guaranteed minimum annual return of 7%. Furthermore, SCI has committed to repatriating the invested funds to India within two years of each tranche.
• Phased Approach: Sellwin may initially invest up to USD 3 million (approximately ₹26 crore), indicating a phased, measured approach to capital deployment.
• Validity and Valuation: The MOU is effective for a full year after the date of signing, and a fair valuation of SCI for this transaction will be carried out as of December 31, 2025.
• Regulatory Approvals: In addition to the necessary corporate and regulatory permissions in the United States, the execution of the definitive investment will require approvals from important Indian agencies, such as the RBI, SEBI, BSE, FEMA, and MCA.

Strategic Expansion in the Gulf IT Services Market:

Separately, on August 21, 2025, Sellwin Traders also signed an MOU with Global Market Insights IT Services LLC (GMIIT), headquartered in Dubai.

• Investment Details: This partnership involves a controlling investment of over 51% for USD 1 million, making GMIIT a subsidiary of Sellwin Traders Limited.
• Targeted Growth Areas: The collaboration targets expansion in IT services, market research, consulting, digital solutions, and joint marketing in the Gulf region.
• Expected ROI: The partnership expects a return on investment of at least 7% annually.
• Investment Structure: Depending on regulatory compliance and due diligence, the investment may be structured as a cash, in-kind, or share swap.
• Joint Initiatives: In order to increase exposure and credibility in the area, the agreement calls for both businesses to work together to establish company infrastructure, resources, and a solid clientele. Additionally, it calls for cooperative branding and marketing initiatives.
• GMIIT's Expertise: Global Market Insights IT Services LLC is a high-tech IT services firm specialising in Artificial Intelligence, Blockchain Development, Cybersecurity, Website Development, Digital Marketing, and Custom Application Development.

Financial Performance in Q1 FY26:

Sellwin Traders Limited has reported robust financial results for the Q1FY26 ended June 2025:

The company's Q1FY26 net profit of ₹3.14 crore was a 350% year-over-year (Y-o-Y) increase over the ₹70 lakh it made in the same quarter the previous year.  Operational revenue for the quarter was ₹21.85 crore, up 31.4% from Q1FY25's reported ₹16.63 crore.  The company reported a net profit of ₹2.79 crore and revenue from operations of ₹74.28 crore for the whole fiscal year FY24–25, indicating consistent growth momentum that was carried over into the following fiscal year.

Fund-Raising Approved to Support Expansion

To fund its ambitious expansion plans, the company's board of directors, in a meeting dated July 31, 2025, approved raising funds through the issue and allotment of up to 4.75 crore warrants at a minimum price of ₹8.40 per warrant.

Sellwin Traders Share Price

On Monday, Sellwin Traders share price was locked at 2% upper circuit. In the last 13 sessions stock price has been hitting back-to-back upper circuit. 

Disclaimer: The article is for informational purposes only and not investment advice.