Sellwin Traders' share price is locked in the 2% upper circuit on Tuesday, September 2, 2025. The stock price is hitting 19 consecutive upper circuit records. The stock price has given 184% returns in the last 3 months, doubling its share price, while in the last 6 months it has given 262% returns.
Here are some of the key reasons for the stock rally:
Sellwin Traders Limited is pursuing a strategy of global expansion through several key acquisitions and partnerships. The company has entered into a memorandum of understanding (MOU) to acquire a 60% stake in Shivam Contracting Inc. (SCI), a U.S.-based construction company. This investment, valued at up to $6 million (approximately ₹52 crore), will be settled by issuing shares of Sellwin Traders at a price not less than ₹18 per share.
The MOU, which is valid for 12 months, stipulates that SCI will provide a minimum annual return of 7% and repatriate funds to India within two years of each tranche, ensuring attractive risk-adjusted returns for Sellwin’s shareholders. This move is part of a phased approach to international growth, with an initial investment of up to $3 million planned. The final deal is contingent on various regulatory approvals in both India and the US.
In addition to the U.S. deal, Sellwin is also targeting expansion in the Gulf region. On August 21, the company signed another MOU to acquire a controlling stake of more than 51% in Global Market Insights IT Services LLC (GMIIT), a Dubai-based IT services firm. This acquisition, valued at $1 million, aims to broaden Sellwin's reach into IT services, including AI, blockchain and cybersecurity, with a focus on the Gulf market.
The partnership will involve joint investment in business infrastructure, resources and client acquisition, with an expected return on investment (ROI) of 7% plus per annum. This strategic move aligns with Sellwin's vision to diversify its business portfolio and establish a stronger presence in the Middle East.
Sellwin Traders has demonstrated strong financial performance, which supports its ambitious expansion plans. In the first quarter of fiscal year 2026 (Q1FY26), the company reported a net profit of ₹3.14 crore, marking a substantial year-over-year increase of 350%. Revenue from operations also saw a significant rise of 31.4% to ₹21.85 crore during the same period. This robust growth provides a solid financial foundation for the company's international investments and strategic acquisitions.
To fund its expansion and growth initiatives, Sellwin has secured approval from its board of directors to raise capital. The company plans to issue and allot up to 4.75 crore warrants at a minimum price of ₹8.40 per warrant. This fundraising effort is crucial for financing the proposed acquisitions and supporting the development of new business ventures, particularly in the U.S. and the Gulf regions. The move highlights Sellwin's proactive approach to capital management and its commitment to realising its global aspirations through strategic, well-funded partnerships.
On Tuesday, Sellwin Traders share price hit 2% upper circuit. As of 10:40 am IST, the stock price was locked at ₹11.39 per share.
Disclaimer: The article is for informational purposes only and not investment advice.