After 1:10 Stock Split, FMCG Tobacco Stock Hits Upper Circuit As Board Okays Rs 300 Cr QIP

The shares of the small-cap FMCG company Elitecon International Ltd. remained locked at Rs 93.34 per share on Thursday, July 10, at a 5% upper circuit limit. Following the announcement by the firm's Board of Directors on Wednesday that it would acquire a Dubai-based spice company for Rs 700 Cr, sanction a Rs 300 Cr QIP, and issue a Rs 400 Cr preferential issue, the shares of the maker of cigarettes and tobacco products saw a positive trend.

At its meeting on Wednesday, July 09, 2025, the company's Board of Directors declared that, subject to the members' approval, it will issue equity shares through Qualified Institutions Placement (QIP) for a total of up to Rs. 300,00,000. Following the setting of the issue price at the time of securities issuance, the total number of securities planned to be issued through Qualified Institutions Placement (QIP) will be determined as per the Board.

Most significantly, the Board approved the acquisition of Prime Place Spices Trading L.L.C., an FMCG trading company located in Dubai that deals in tea, confectionery products, nuts, and spices. Elitecon will now own 100% of the foreign company thanks to the acquisition, which is estimated to be worth Rs 700 crore and includes a mix of cash payments of Rs 300 crore and a share swap deal of Rs 400 crore. This strategic action fits with Elitecon's strategy to broaden its presence in the global FMCG and agro-commodities markets.

Furthermore, the Board authorized the preferential issuance of shares valued at Rs 400 crore through a share swap, mostly with the acquired company's UBO, Mr. Santosh Sharma. Following the preferential issue, Mr. Sharma will own around 4.24% equity stake in Elitecon. August 6, 2025 has been set aside for an Extraordinary General Meeting (EGM) in order to get shareholder approval for these matters.

A 10:1 stock split has recently occurred at Elitecon International, dividing each current share with a face value of Rs 10 into 10 shares having a face value of Rs 1. June 25, 2025, was the record date for this split.

Previously known as Kashiram Jain and Firm Limited, Elitecon International Ltd. is a tobacco firm that specializes in the production and distribution of cigarettes and other tobacco products. The company is present in both domestic and international markets, such as the UK, Singapore, Hong Kong, and the United Arab Emirates. The stock price has gone up significantly in recent times, rising by 151.05% in the previous three months and 53.07% in the last month (as of July 10, 2025). With an 8385% rise in its share price over the last year, Elitecon International Ltd. has been identified as a multibagger stock because of its significant returns to investors.