Stock Report

Sellwin Traders Ltd has signed MOU to acquire 36% Equity Stake in Kumkum Wellness

Posted On : 2025-11-15 19:56:37( TIMEZONE : IST )

Sellwin Traders Limited (BSE - 538875) has signed a memorandum of understanding (MOU) with Kumkum Wellness Private Limited (KWPL), which operates under the brand name "KAYAPALAT." Under this agreement, Sellwin Traders plans to acquire an initial 36% equity stake in KWPL, with an option to increase its holding up to 60% within the next 18 months. This phased acquisition underscores Sellwin Traders's confidence in KWPL's business model and long-term growth potential.

Sellwin Traders believes this collaboration will strengthen its foothold in the wellness sector and create meaningful value for shareholders. The MoU also sets a clear roadmap within which the parties aim to formalize definitive agreements by 31 December 2025, contingent upon successful due diligence, a fair valuation by a registered valuer, required statutory approvals, and other compliance steps.

At the Board of director meeting held on 5 July 2025, company approved the allotment of 5,035,000 equity shares at a price of Rs. 5.50 each (face value Rs. 2, premium Rs. 3.50), under a preferential issue to nonpromoter investors. Subsequently, on 13 September 2025, 4,935,000 additional shares were allotted on the same terms under the same preferential allotment. During the quarter ended 30 September 2025, company received a total of Rs. 306.46 lakh from the allottees.

For the quarter ended September 2025, company reported net profit of Rs. 2.72 crore as compared to the net profit of Rs. 83 lakh in the corresponding period last year, rise of 227% Y-o-Y. Revenue from operations for Q2FY26 was reported at Rs. 14.68 crore.

For H1FY26 company has reported net profit of Rs. 5.86 crore, rise of 283% Y-o-Y as compared to the net profit of Rs. 1.53 crore in the corresponding period last year. Revenue from operations for H1FY26 was reported at Rs. 36.53 crore as against revenue from operations of Rs. 32.25 crore in the corresponding period last year, 13.2% rise Y-o-Y.

Commenting on the development, Mr. Monil Vora, Director, Sellwin Traders Limited, said, "We are excited to embark on transformative global partnerships, reaffirming our growth-centric vision. The phased acquisition of Kumkum wellness underscores company's confidence in its business model and longterm growth potential and company believes this collaboration will strengthen its foothold in the wellness sector and create meaningful value for shareholders. Bolstered by a robust Q2 FY26 performance we are strategically positioned for accelerated value creation. Further, the equity-linked investment in Shivam Contracting Inc. strengthens our exposure to the U.S. infrastructure sector with attractive return and assured fund repatriation within two years. Simultaneously, the planned controlling acquisition of Dubai's GMIIT amplifies our footprint in the Gulf IT services market, targeting over 51 percent equity."

On 23 August 2025, company had signed a memorandum of understanding (MOU) with Shivam Contracting Inc. (SCI), a U.S.-incorporated corporation to form a strategic equity-linked partnership. Under the MOU, STL has agreed in principle to invest up to USD 6 million (Approx. Rs. 52 crore) to participate in SCI's ongoing and future projects across the United States.

Under the terms of the MOU between both parties, Sellwin Traders Ltd can acquire a 60% equity stake in Shivam Contracting Inc. The acquisition consideration will be settled via issuance of shares by Sellwin Traders Limited at agreed rate which should not less than Rs. 15 per Share. A fair valuation of SCI for this deal will be conducted as of December 31, 2025. The MOU remains valid for 12 months from the signing date.

Shivam Contracting Inc. is a U.S.-based contracting company engaged in executing construction and infrastructure projects within the United States. Shivam Contracting Inc. commits to repatriating the invested funds to India within two years of each tranche, with a guaranteed minimum return of 7% per annum-designed to ensure attractive risk-adjusted returns for STL shareholders.

Pursuant to the MOU, Sellwin may invest up to USD 3 million (approx. Rs. 26 crore), reinforcing its vision of global expansion through strategic alliances with a phased, measured approach to capital deployment and partnership growth.

On August 21, 2025, Sellwin Traders also signed an MOU with Global Market Insights IT Services LLC (GMIIT), Dubai, for a controlling investment of over 51% for USD 1 million, making GMIIT its subsidiary. The partnership targets expansion in IT services, consulting, digital solutions, and joint marketing in the Gulf, with expected ROI of 7% plus per annum. Investment may be structured via cash, in-kind, or share swap, subject to due diligence and regulatory compliance. The partnership will focus on expansion of IT services, market research, consulting, and digital solutions. In Gulf region. Both companies will jointly invest in developing business infrastructure, resources, and a strong client base. The agreement also envisions joint branding and marketing efforts to strengthen visibility and credibility in the region.

Global Market Insights IT Services LLC, headquartered in Dubai, is a high-tech IT services firm specializing in Artificial Intelligence, Blockchain Development, Cybersecurity, Website Development, Digital Marketing, and Custom Application Development. The company has been at the forefront of enabling digital transformation for businesses across industries.