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Sellwin Stock Hits 5% Upper Circuit
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Sellwin Traders Ltd (STL) has entered into a memorandum of understanding with Kumkum Wellness Pvt Ltd (KWPL), known for its wellness brand “KAYAPALAT.” As part of the agreement, STL will initially acquire a 36% equity stake, with an option to raise its holding to as much as 60% within the next 18 months.

This staged approach outlines STL’s plan to deepen its presence in the wellness market while evaluating long-term opportunities.

Both companies aim to finalise definitive agreements by December 31, 2025. The completion of the transaction will be subject to due diligence, valuation by a registered valuer, statutory approvals, and other regulatory compliance requirements. The MoU sets the direction for a structured and time-bound acquisition process.

Preferential Allotment of Equity Shares

At its board meeting on July 5, 2025, Sellwin Traders approved a preferential issue of 50.35 lakh equity shares at ₹5.50 each to non-promoter investors. A second tranche of 49.35 lakh shares was allotted on 13 September 2025 under the same terms. During the quarter ending 30 September 2025, the company received ₹306.46 lakh from these allotments, strengthening its capital position.

Sellwin Traders Q2 FY26 Financial Performance

The company reported net profit of ₹2.72 crore for Q2 FY26, significantly higher compared to ₹83 lakh in the same quarter of the previous year, marking a 227% year-on-year increase. Revenue from operations for the quarter stood at ₹14.68 crore, reflecting consistent growth.

Sellwin Traders H1 FY26 Operational Highlights

For the first half of FY26, Sellwin Traders posted a net profit of ₹5.86 crore, a 283% rise from ₹1.53 crore recorded in H1 FY25. Revenue for the six-month period reached ₹36.53 crore, up 13.2% year-on-year from ₹32.25 crore. These results underline the company’s improved operating traction and stronger profitability.

MoU With US-Based Shivam Contracting Inc.

On 23 August 2025, STL signed an MoU with Shivam Contracting Inc. (SCI), a U.S.-incorporated construction and infrastructure services company. As per the agreement, STL plans to invest up to USD 6 million (approximately ₹52 crore) in SCI’s ongoing and future projects. The arrangement includes an option for STL to acquire a 60% equity stake in SCI, with the final valuation to be determined as of December 31, 2025. SCI has committed to repatriating the invested funds to India within two years of each tranche with a minimum assured return of 7% per annum.

Capital Deployment Strategy for US Investments

Under the terms of the MoU, Sellwin may initially invest up to USD 3 million (₹26 crore), enabling a phased approach to strengthening its presence in the U.S. infrastructure sector. The investment will be structured through equity exchange, with share issuance at a price not lower than ₹15 per share, subject to valuation and compliance requirements.

MoU With Dubai-Based Global Market Insights IT Services

On August 21, 2025, Sellwin Traders initiated another major international expansion by signing an MoU with Global Market Insights IT Services LLC (GMIIT), Dubai. The agreement outlines a plan for STL to acquire over 51% equity for USD 1 million. Once completed, GMIIT will become a subsidiary of Sellwin Traders.

Focus on Gulf IT Market Expansion

The partnership is aimed at strengthening STL’s presence in the Gulf region in areas such as IT services, consulting, AI solutions, digital marketing, and custom application development. The investment may be executed through cash, in-kind contributions, or share swaps, depending on due diligence and regulatory permissions. The companies will jointly undertake branding, marketing, and business development to scale operations across the Gulf.

Profile of GMIIT and Business Synergies

Global Market Insights IT Services LLC is a Dubai-headquartered technology firm providing services in Artificial Intelligence, Blockchain development, Cybersecurity, Website creation, Digital Marketing, and Application development. The collaboration will allow STL to tap into GMIIT’s strong capabilities and established market presence in digital transformation services.

Sellwin Traders Share Price Hit 5% Upper Circuit on Monday

On Monday, Sellwin Traders share price jumped 5% and locked at 5% upper circuit, after the company signed an MOU to acquire a 36% Stake in Kumkum Wellness. The stock price has given multibagger returns of 111%.