Stock Market News: Shares of THIS company in focus after it plans for major merger, check share price

Elitecon International Ltd, a company with a market cap of Rs 15,273.67 crore, today gave important information to investors in its latest exchange filing. The cigarette and tobacco product manufacturer said it has taken a major step to expand its future and deliver value to shareholders. The company said in the filing that it has appointed global professional firm Deloitte Touche Tohmatsu India LLP as its advisor for tax, regulatory and transaction management related to the merger. According to the information received from the filing, the board of the company is currently considering a plan to merge with Sunbridge Agro Private Limited, Landsmill Agro Private Limited and Golden Cryo Private Limited, for which all necessary statutory and NCLT approvals will be taken. The company said that this proposed merger is expected to result in integration of business verticals, improvement in operational efficiency, strengthening of balance sheet, better stability of earnings and strengthening of the company’s position in the market. The company believes that this merger will provide Elitecon International Limited with a strong growth platform in the long term. The company’s stock was currently trading at Rs 95.55, down 0.32% or Rs 0.31 on the BSE as of 2:38 pm. This stock has returned 733%, multiplying investors’ money 8-fold in one year. It has gained over 8,970% in the last three years and over 9,425% in the last five years. The recent government increase in cigarette taxes, which will come into effect on February 1st, will not affect Elitecon because its business model is entirely export-based. Tobacco exports are subject to zero GST. Exports are considered zero-rated under GST, and Elitecon International operates under the LUT and refund mechanisms. This means that the increase in GST rates on cigarettes and tobacco does not directly impact the company’s revenue or margins.