Elitecon International Ltd. is scheduled to hold a board meeting on Friday, 27 February 2026, to consider a proposal for the the reversal of its planned acquisition of Sunbridge Agro Pvt Ltd.
According to an exchange filing, the company’s board of directors will also consider and take note of the resignation tendered by Executive Director Dayanand Ray on the same meeting scheduled next week.
The company’s share price edged lower at Friday’s close following the announcement. The New Delhi-based company manufactures and trades in tobacco-based products for both domestic and international markets.
Reversal of acquisition due to lack of funds
The proposal to reverse the said acquisition comes after the company failed to raise adequate funds for the transaction. The deal was intended to be partially funded through proceeds from a Qualified Institutional Placement (QIP). However, the company was unable to successfully complete the QIP, resulting in non-receipt of the anticipated funds.
In October last year, Elitecon acquired 98,77,138 equity shares of Sunbridge Agro, representing a controlling 51.65% stake, at ₹130 per share. The transaction entailed a total cash outlay of ₹128.4 crores.
Consequently, Elitecon has not been able to meet its payment obligations under the share purchase agreements (SPAs) within the stipulated timelines.
In light of these developments, the board is expected to evaluate a proposal to either reverse or settle the acquisition transaction, subject to mutual discussions with the concerned parties and applicable statutory and regulatory compliance requirements, the company said in the BSE filing.
Stock trend of the company
Elitecon International share price closed almost 5% lower at ₹69.69 after Friday’s stock market session, compared to ₹73.28 at the previous market close, BSE data shows.
Shares of Elitecon have given stock market investors more than 5,100% returns on their investment since the company was listed on the Indian stock market in August 2024. In the last one-year period, the company’s shares have delivered more than 230% returns.
However, on a year-to-date (YTD) basis in 2026, the company’s stock has declined 31.97%. The stock is also down around 6.01% over the past one month, and has slipped 1.20% in the last five trading sessions on the Indian stock market, reflecting sustained selling pressure.
The BSE-listed company’s market capitalisation stood at ₹11,149 crore as of the stock market close on Friday, 20 February 2026.
Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
