Sellwin Traders Ltd enters into MOU with Myzek Logistics Pvt Ltd

Sellwin Traders Limited (BSE - 538875) has entered into a Memorandum of Understanding (MOU) with Myzek Logistics Pvt Ltd, an emerging player in appbased, eco-friendly last-mile delivery services operating under the brand "Dropon". Myzek currently handles logistics for BTB, BTC including but not limited to manufacturer, E-commerce service providers like JioMart, Zomato and Blinkit under the Brand name Dropon.

The MOU outlines a proposed strategic equity partnership through which Sellwin Traders intends to acquire an initial equity stake of up to 20% in Myzek Logistics, with the potential to increase its holding to up to 35% over time, subject to mutually agreed terms, valuation, regulatory approvals and execution of definitive agreements. The deal can be structured in the share swap at Rs. 15 per share. Current share price of Sellwin Traders Ltd is Rs. 8.93 per share.

Founded as a technology-led logistics platform, Myzek Logistics has demonstrated strong early traction with over 68,000 registered users, delivery of more than 5.03 lakh orders, and operational presence across key Gujarat cities including Ahmedabad, Gandhinagar and Surat. The company has projected revenues of approximately Rs. 15.50 crore for FY26 and plans to expand into Tier-2 cities while adopting new-age delivery technologies and sustainable mobility solutions.

In addition to equity participation, the MOU also contemplates funding support of up to Rs. 5 crore by Sellwin Traders, which may be structured as a convertible instrument to support Myzek's fleet expansion, technology upgrades and geographic scale-up.

This proposed association aligns with Sellwin Traders' strategy of investing in scalable, futureready businesses and gaining exposure to the fast-growing logistics and mobility segment. For Myzek Logistics, the partnership is expected to provide long-term capital support, strategic guidance and enhanced credibility as it enters its next phase of growth. The MOU is non-binding and subject to due diligence, valuation, shareholder and regulatory approvals.

In a recent move, Sellwin Traders Ltd and Patel Container India Private Limited PCIPL have advanced their partnership by initiating the formal Strategic Association and Share Swap Agreement for Sellwin's proposed 36% investment in PCIPL's container manufacturing project being developed near Bhavnagar, Gujarat. The move follows an earlier MOU signed in 2024, under which both companies agreed to explore collaboration for the development of PCIPL's container manufacturing facility.

A significant milestone for the Project was achieved with the State Bank of India (SBI) sanctioning a term loan of INR 20 crore through a sanction letter dated 18 October 2025. This loan forms a key component of the overall Project financing structure, alongside promoter contribution and the proposed investment from Sellwin.

Sellwin Traders has agreed to invest 36% of the Project valuation into PCIPL under a strategic arrangement. The investment will be executed through a share swap mechanism, under which PCIPL shall allot equity shares representing the 36% stake to Sellwin. In return, Sellwin will issue its own equity shares to PCIPL or its nominated entities. As per the agreed terms, the equity shares issued by Sellwin shall not be priced below INR 15 per share.

Company has also had entered into 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.

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 be less than Rs. 18 per Share. 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 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.

Source : Equity Bulls

Keywords

SellwinTraders MOU MyzekLogistics Dropon