Sellwin Traders Expands into Wellness Sector with Kumkum Wellness Stake Acquisition

Sellwin Traders Limited has announced a strategic move into the wellness sector through a memorandum of understanding (MOU) with Kumkum Wellness Private Limited (KWPL), which operates under the brand name "KAYAPALAT". The company plans to acquire an initial 36% equity stake in KWPL, with an option to increase its holding up to 60% within the next 18 months.

Key Highlights of the MOU

Sellwin Traders to acquire an initial 36% stake in Kumkum Wellness Private Limited
Option to increase stake to 60% within 18 months
Acquisition to be completed through a share swap arrangement
Definitive agreements to be executed by December 31, 2025

Financial Performance

Sellwin Traders has reported strong financial results for the second quarter and first half of fiscal year 2026:

Period	Net Profit (₹ crore)	YoY Growth	Revenue (₹ crore)	YoY Growth
Q2 FY26	2.72	227%	14.68	-
H1 FY26	5.86	283%	36.53	13.2%

Strategic Partnerships

In addition to the Kumkum Wellness acquisition, Sellwin Traders has recently entered into two other strategic partnerships:

US-based Shivam Contracting Inc: Signed an MOU on August 23, 2025, to invest up to $6 million (approximately ₹52 crore) for potential equity participation.
Dubai-based Global Market Insights IT Services: Signed an MOU on August 21, 2025, to acquire more than 51% stake, targeting expansion in the Gulf region.

Share Allotments

The company's board of directors has approved two preferential share allotments:

July 5, 2025: 50.35 lakh equity shares at ₹5.5 per share
September 13, 2025: 49.35 lakh equity shares at ₹5.5 per share

During the quarter ended September 30, 2025, the company received a total of ₹306.46 lakh from these allotments.

Management Commentary

Mr. Monil Vora, Director of Sellwin Traders Limited, stated, "We are excited to embark on transformative global partnerships, reaffirming our growth-centric vision. The phased acquisition of Kumkum Wellness underscores our confidence in its business model and long-term growth potential. We believe this collaboration will strengthen our foothold in the wellness sector and create meaningful value for shareholders."

He added, "Bolstered by a robust Q2 FY26 performance, we are strategically positioned for accelerated value creation. The equity-linked investment in Shivam Contracting Inc. strengthens our exposure to the U.S. infrastructure sector with attractive returns and assured fund repatriation within two years. Simultaneously, the planned controlling acquisition of Dubai's GMIIT amplifies our footprint in the Gulf IT services market."

Conclusion

Sellwin Traders Limited's strategic moves into the wellness sector, coupled with its international partnerships and strong financial performance, indicate a focused approach towards diversification and growth. As the company executes these initiatives, investors and stakeholders will be watching closely to see how these strategic decisions translate into long-term value creation.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.66%	-9.48%	-4.54%	+216.04%	+106.70%	+326.73%

Sellwin Traders Limited has issued a corrigendum to its postal ballot notice, detailing revised plans for a preferential issue of convertible warrants worth ₹39.90 crore. The company aims to raise funds for various strategic initiatives, including investments in subsidiaries and overseas ventures.

Key Details of the Warrant Issue

Item	Detail
Issue Size	Up to 4.75 crore convertible warrants
Price	₹8.40 per warrant (₹2.00 face value + ₹6.40 premium)
Total Fundraise	₹39.90 crore
Allottees	103 individuals/entities in the non-promoter category

Proposed Fund Utilization

Sellwin Traders has outlined a comprehensive plan for utilizing the funds:

Investment in SDF Productions Pvt. Ltd. (₹12.00 crore):
- Establishment of 6 new 'Maajghar' retail stores
- 3 in Gujarat, 2 in Maharashtra, 1 in Madhya Pradesh
- Expected cost: ₹2.00 crore per store
Investment in Damask Jewellery Pvt. Ltd. (₹8.00 crore):
- ₹5.00 crore for opening 2 new jewellery showrooms in Gujarat
- ₹3.00 crore for enhancing bullion stock
Overseas Investments:
- ₹4.00 crore in Global Market Insights IT Services LLC, Dubai
- ₹6.00 crore in Shivam Contracting Inc., USA
Working Capital Requirements: ₹8.00 crore
General Corporate Purposes: ₹2.00 crore

Warrant Terms and Conditions

Term	Condition
Exercise Period	18 months from the date of allotment
Payment Structure	25% upfront, 75% upon conversion
Lock-in Period	As per SEBI regulations

Impact and Expectations

The company expects these investments to yield significant returns:

Maajghar stores to achieve operational break-even within 8-12 months
Jewellery and bullion trading to generate 12-15% ROI over 2 years
Strategic overseas investments targeting 14-16% IRR over 3 years

Sellwin Traders Limited's board believes this preferential issue is in the best interest of the company and its shareholders. The proposal requires approval from members through a Special Resolution as per the Companies Act, 2013 and SEBI regulations.

This revised plan demonstrates Sellwin Traders' commitment to expanding its retail presence, diversifying its portfolio, and exploring international markets. The success of these initiatives could potentially strengthen the company's market position and financial performance in the coming years.