1:10 Split: Not ITC, But A Smallcap Tobacco Stock JUMPED 5,005% In 1-Yr; Plans Rs 75 Cr Fundraising

One listed company that is engaged in the business of cigarettes and tobacco turned ex-split on June 26. Even after splitting up for the first time in the ratio of 1:10, this tobacco stock has skyrocketed by more than 5,000% in a 1-year span. Notably, this company will be in focus on June 26 as it plans fundraising of Rs 75 crore, and a board meeting is scheduled on the day. It's not the largest cigarette maker, ITC Ltd.!

But a small-cap company with a market value around Rs 9,000 crore and a whopping return of equity (ROE) of 144.88%. Drum Rolls! Its Elitecon International listed on BSE.

Elitecon International Ltd Stock Split:

On June 25, Elitecon turned ex-split for its 1:10 shares sub-division. The ratio of 1:10, meant, sub-division of 1 equity share of Elitecon with face value of Rs 10 each to 10 equity shares with Re 1 face value.

Following the stock split, Elitecon said, "we hereby inform you that the Sub-division of Equity Shares will take effect under the new ISIN i.e. INE669R01026."

What Is Stock Split?

As per Zerodha's website, a stock split is a corporate action where a company increases the number of shares by reducing the face value of the stock. Companies generally split shares to increase liquidity since the price of the stock reduces after the split. A split increases the number of shares by decreasing the face value, but the total value of the investment remains the same. The split shares will be credited in 2 days.

Elitecon International Share Price:

After turning ex-split, Elitecon shares ended at Rs 56.15 apiece, hitting its 5% upper circuit with market cap of Rs 8,975.58 crore. The stock's 52-week high and low is at Rs 62.96 apiece and Rs 1.10 apiece respectively.

Despite adjusting to 1:10 split ratio, Elitecon is a multibagger. In the past 1 year, the stock zoomed by 5,004.55%. While its return on equity is also strong at 144.88%. However, its price-to-equity ratio is at 27.80x. BSE's Additional Surveillance Indicator said that Elitecon scrip's PE is greater than 50 for previous 4 trailing quarters.

Elitecon International Fundraising:

On Wednesday, Elitecon informed BSE that the meeting of the Board of Directors of the Company is scheduled on 01/07/2025 ,inter alia, to consider and approve Pursuant to Regulations 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the meeting of the Board of Directors of the Company will be held on Tuesday, July 01, 2025, inter alia, to consider and approve the following business matters: 1. To discuss and evaluate the proposal for raising funds up to an amount of Rs. 75 Crores (Rupees Seventy Five Crores Only) by way of preferential allotment, issue of convertible warrants, Foreign Currency Convertible Bonds (FCCBs), Qualified Institutional Placement (QIP) or any other permissible instruments/modes, subject to necessary approvals from Shareholders, regulatory bodies and other stakeholders. 2. Any other item with the permission of the Chair.