Elitecon International share price hit a 5 per cent upper circuit on Wednesday. The multibagger stock has been hitting the upper circuit for four consecutive sessions.
At 1:10 pm, the Elitecon International shares were trading 4.97 per cent up at ₹173.10.
The multibagger stock has witnessed a significant rally of 21 per cent in the past five trading sessions and, in fact, has more than doubled its long-term investors’ wealth by surging over 350 per cent in six months.
What’s behind the rally?
On October 1, Elitecon International announced its plans to acquire stake in two entities – Landsmill Agro Private Limited and Sunbridge Agro Private Limited.
Elitecon International has purchased a 55 per cent equity stake in Landsmill Agro Pvt Ltd for ₹52.85 crore in cash. The deal involved acquiring 51.48 lakh equity shares of Landsmill Agro at a price of ₹102.67 per fully paid-up share, each carrying a face value of ₹10.
“The primary objective of these acquisitions is to expand and strengthen Elitecon’s FMCG business vertical, an area where the Company is already actively engaged through its existing dealings in agro products and allied activities. By consolidating its presence through these acquisitions, Elitecon seeks to enhance operational scale, increase product depth, and diversify revenue streams,” Elitecon International said in a regulatory filing on October 1.
Elitecon International also revealed that it has acquired a 51.65 per cent equity stake, equivalent to 98.77 lakh shares, in Sunbridge Agro Pvt Ltd for ₹128.40 crore.
The company further said it plans to secure full ownership of both entities by acquiring the remaining shares within the next 12 months.
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