Elitecon International Ltd. Shares Surge 5% on Strategic Financial Expansion and Major Export Contract

Mumbai (Maharashtra) [India], January 7: Shares of Elitecon International Ltd. (EIL) witnessed strong investor interest on Tuesday, hitting the 5% upper circuit to reach an intraday high of Rs 95.86 per share. This surge from a previous close of Rs 91.43 comes amid a series of strategic corporate developments aimed at fortifying the company’s financial foundation and accelerating its global growth trajectory.

The company is seeking shareholder approval to significantly enhance its financial capabilities. Through Special Resolutions, Elitecon proposes to increase the investment and loan limits under Section 186 of the Companies Act to Rs 750 crore and expand its borrowing powers under Section 180(1)(c) to Rs 500 crore. While the company’s current activities remain within existing statutory limits, the Board has recommended these elevated thresholds to secure greater operational flexibility, enable optimal financial structuring, and support future business prospects by accessing diverse funding sources from Banks and NBFCs. The proposal also includes authorising the Board to secure such borrowings by creating mortgages or charges on the company’s assets as required for smooth business functioning.

This move to bolster financial muscle follows a landmark commercial achievement for the company. Elitecon recently secured a transformative two-year international supply contract valued at USD 97.35 million with Yuvi International Trade FZE for the export of cigarettes and tobacco-related products to the Middle East. This milestone agreement is a cornerstone of the company’s global expansion strategy, providing clear, long-term revenue visibility and enabling optimised production planning for scalable growth through a sustainable, export-led business model.

Established in 1987, Elitecon International Ltd. specialises in the manufacturing and trading of a diverse portfolio. With an established presence in the UAE, Singapore, Hong Kong, and European markets like the UK, the company continues to pursue an aggressive expansion strategy, planning to introduce new product lines.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.

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