Media Release for MOU between Shivam Contracting Inc. and Sellwin Traders Limited
Awaiting price reaction for this filing.
Sellwin Traders Ltd has signed an MOU with U.S.-based Shivam Contracting Inc. (SCI) to invest up to USD 6 million (~Rs 52 crore) and acquire a 60% stake via issuance of shares at not less than Rs 18 per share. SCI has committed to a minimum 7% annual return and repatriation of invested funds within two years of each tranche. Separately, on August 21 the company also signed an MOU with Dubai-based Global Market Insights IT Services LLC (GMIIT) for USD 1 million to acquire over 51% stake, targeting Gulf expansion. Q1FY26 results showed net profit of Rs 3.14 crore (up 350% YoY) on revenue of Rs 21.85 crore (up 31.4%). The board has approved raising funds through up to 4.75 crore warrants at a minimum Rs 8.40 per warrant. Final execution requires RBI, SEBI, BSE, FEMA and MCA approvals.
The deal signals aggressive global expansion into U.S. infrastructure and Gulf IT services, but carries significant dilution risk from the share-swap structure and pending warrant issue, while regulatory approvals remain pending. Short-term stock movement may be volatile given multiple announcements in quick succession and the small-cap nature of the company.