The small-cap firm Elitecon International Ltd., which trades in cigarettes and tobacco products, has disclosed its expansion strategy by announcing that its board of directors will meet on Friday, July 25 to discuss raising funds through QIP.
“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 Friday, July 25, 2025, inter alia, to consider and approve the following business matters: 1. Raising of funds by issue of Equity Shares through Qualified Institutions Placement (“QIP’) for an aggregate amount up to Rs.300,00,00,000/- (Rupees Three Hundred Crores) (inclusive of such premium or discount as may be fixed on such Equity Shares) subject to the receipt of approval of the Members of the Company and such other approval(s)/ permission(s)/ consent(s)/ sanction(s) of any government/ regulatory/ statutory authorities, as may be required. 2. Any other item with the permission of the Chair,” said Elitecon International in a stock exchange filing.
At its meeting on July 16, 2025, the company’s Board of Directors also reviewed the current state of the previously authorized plan to acquire all of Prime Place Spices Trading LLC’s equity shares from Mr. Santosh Sharma, the company’s only shareholder. The Board has discovered a number of significant deficiencies and unsolved issues that have a meaningful influence on the transaction’s sustainability, based on the results of the ongoing legal and financial due diligence exercise conducted by the internal and external team.
“These include serious issues related to the integrity and verifiability of major key financial metrics, asset quality and supporting documentation, all of which are essential for a transaction of this nature. Despite multiple follow-ups, the required information has not been satisfactorily provided. As a result, the Board has resolved to place the proposed acquisition on hold and the earlier signed Share Purchase Agreement along with related documents shall be considered null and void. The transaction may be reconsidered in the future upon receipt and satisfactory review of all necessary clarifications and supporting records. The deferment shall be effective immediately and shall stay in place until satisfactory and verifiable resolution/documents/information is submitted and evaluated,” Elitecon International confirmed in a regulatory filing.
As a result, the Extra Ordinary General Meeting (EGM) that was supposed to take place on August 6, 2025, to reach out to the company’s members for their approval of the aforementioned transaction has also been canceled. The Board has given Prime Place Spices Trading LLC until August 16, 2025, to settle the matter and provide the required documentation and clarification to meet its requirements in order to resume the discussion about the acquisitions of Prime Place Spices Trading LLC; if this is not done, the proposed transaction will be considered closed.
On Friday, the shares of Elitecon International Ltd ended at a 5% upper circuit limit at Rs 125.00 per share with a market cap of Rs 19,981.25 Cr. Over the past year, Elitecon International Limited’s stock performance has shown a stunning reversal. The stock saw an astonishing rise of more than 11,270%, rising from a 52-week low of Rs 1.10 on August 26, 2024, to a 52-week high of Rs 125.06 on July 18, 2025. In addition to highlighting the company’s bold expansion goals, the recent announcement of a projected Rs 300 crore QIP may have been a major factor in the stock price spike.