Penny Stock Below Rs 5: After Historic Bonus and Split, Shri Nitin Gadkari Praises Efforts; Company Expects Business Worth 1/3 of Market Cap!
This collaboration is expected to generate annual revenue of about Rs. 30 crore with healthy margins of 35-40 per cent.
On Friday, while the frontline equity benchmark indices experienced volatility, stock-specific action remained robust on D-Street. One stock that stood out and is likely to remain in focus on Monday is Sellwin Traders Ltd. The stock hit its upper circuit limit on Friday and could continue to garner market participants' attention due to a series of recent developments. Here's a detailed look:
Shri Nitin Gadkari Commends Agro Export Efforts
Union Minister of Road Transport and Highways, Shri Nitin Gadkari, praised the efforts of SDF Productions Pvt Ltd, a subsidiary of Sellwin Traders Ltd, for promoting Indian agro produce such as Nagpur oranges and Alphonso mango pulp on the global stage. The company exports to countries including Iran, UAE, Germany, and the Middle East, with plans to expand into Europe, the UK, and CIS markets.
Strategic Acquisition of SDF Productions
On July 19, 2024, Sellwin Traders Ltd’s board approved acquiring a 51% stake in SDF Productions Pvt Ltd. This strategic investment aims to bolster market expansion, integrate supply chains, and enhance revenues. Recently, SDF Productions secured significant export orders, including:
- USD 1.16 million from Ayudhya Global FZC L.L.C
- USD 1.20 million from Rajesh Global GmbH
- USD 1.15 million from Shing Exim General Trading L.L.C
This collaboration is expected to generate annual revenue of about Rs. 30 crore with healthy margins of 35-40 per cent.
Agro Export MoU to Expand Market Reach
Sellwin Traders Ltd also signed a Memorandum of Understanding (MoU) with SDF Productions Pvt Ltd, specializing in agro exports such as spices, pulses, rice, tea, fruits, and vegetables. The MoU includes:
- Supplying agro products to SDF Productions for domestic and international distribution.
- Providing financial support to SDF Productions for procurement from Indian suppliers.
Blockchain-Based Tokenization Platform MoU
On December 19, 2024, Sellwin Traders Ltd entered into an MoU with Secorbit FZCO, UAE, to develop a blockchain-based tokenization platform. The project, valued at USD 3 million, focuses on tokenizing equities, bonds, and real-world assets. The platform will emphasize scalability, security, and seamless integration into financial ecosystems.
Payment Schedule for the Project:
- Phase 1: $600,000 (Research & Feasibility Study)
- Phase 2: $900,000 (Platform Architecture & Design)
- Phase 3: $900,000 (Core Platform Development)
- Phase 4: $300,000 (Testing & Compliance Audits)
- Phase 5: $300,000 (Launch & Handover)
Impressive Financial Performance
For the nine months of FY25, Sellwin Traders Ltd reported:
- Revenue: Rs. 49.67 crore, a 103% YoY increase (Rs. 24.43 crore in FY24).
- Net Profit: Rs. 2.26 crore, almost 3x YoY growth (Rs. 57 lakh in FY24).
Capital Expansion and bonus Issue
- On January 16, 2025, the board approved raising Rs. 13.75 crore through a preferential allotment of 2.5 crore convertible warrants at Rs. 5.50 per warrant.
- On November 4, 2024, the company issued 2.49 crore bonus equity shares at a 1:8 ratio and implemented a stock split (1 equity share of Rs. 10 split into 5 shares of Rs. 2).
Disclaimer: This article is for informational purposes only and does not constitute investment advice.