On January 23, 2025, Sellwin Traders Ltd’s share price surged by 4% following the announcement of a significant strategic move. The Kolkata-based company has entered into a Memorandum of Understanding (MOU) with Mumbai-based Subhshri Overseas Ltd, a prominent ₹250 crore group, aiming to establish a holding-subsidiary relationship.
The collaboration involves a share swap arrangement, wherein Sellwin Traders will become the holding company, and Subhshri Overseas Ltd will operate as its subsidiary. A third-party valuation expert will determine the share swap ratio based on business prospects. This non-binding agreement also ensures confidentiality and good-faith negotiations.
Key highlights of the arrangement:
Subhshri Overseas Ltd, founded in 1971 and part of the M S Group, specialises in exporting products like readymade garments, textiles, and food items to markets in the Middle East, Africa, and Europe. The group, with an annual turnover of ₹250 crore, has earned accolades, including a government award for excellence in exports.
Sellwin Traders Ltd has demonstrated robust financial performance in FY25:
The MOU positions Sellwin Traders to benefit from Subhshri Overseas Ltd’s expertise in international markets, particularly its stronghold in the textile and apparel export sector. This strategic alliance could potentially open new avenues for revenue and operational synergies.
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Published on: Jan 23, 2025, 3:27 PM IST
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