Elitecon International Limited has announced the appointment of Deloitte Touche Tohmatsu India LLP as its strategic tax and regulatory advisor to evaluate and implement a comprehensive scheme of merger with group companies. The company informed stock exchanges on January 08, 2026, about this significant strategic initiative aimed at strengthening its long-term growth trajectory and operational scale.

Strategic Advisory Appointment

The company has engaged Deloitte Touche Tohmatsu India LLP, a globally reputed professional services firm, as its strategic advisor and transaction program manager. This appointment underscores Elitecon International's commitment to adopting best-in-class governance standards, robust compliance frameworks, and transparent execution of strategic initiatives.

Proposed Merger Structure

The Board of Directors is evaluating a scheme of merger involving three companies with Elitecon International Limited, subject to requisite statutory, regulatory, and NCLT approvals:

Strategic Benefits and Objectives

The proposed merger is designed to deliver multiple strategic advantages for the consolidated entity:

• Operational Synergies: Consolidation of diversified yet synergistic business verticals
• Efficiency Enhancement: Enhanced scale, operational efficiencies, and optimized resource utilization
• Financial Strengthening: Strengthening of balance sheet and long-term earnings visibility
• Market Position: Improved competitiveness and market positioning
• Value Creation: Creation of sustainable value for shareholders and stakeholders

Implementation Framework

The merger scheme is based on strong business synergies, operational complementarities, and a unified growth vision. Elitecon International believes the proposed transaction will place the company on a stronger strategic platform, aligned with its long-term vision of expansion, diversification, and responsible growth.

Regulatory Compliance

The company has made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation clarifies that this announcement is for information purposes only and does not constitute a binding commitment. Further disclosures will be made as required under applicable laws and regulations upon occurrence of material developments.

The strategic initiative represents a transformational milestone for Elitecon International Limited, positioning the company for enhanced operational scale and improved shareholder value creation through the consolidation of complementary business operations.

Elitecon International shares locked at the 5% upper circuit on Wednesday, reaching ₹99.80 and snapping a three-session losing streak. The small-cap stock's rally coincided with a modest recovery in Indian equities during the final trading session, reigniting investor interest in one of the market's most volatile multibagger performers.

Exceptional Long-Term Performance Despite Volatility

Despite recent price swings, Elitecon International's longer-term performance remains extraordinary. The stock has delivered remarkable returns across multiple timeframes, though the journey has been marked by significant volatility.

The stock's 52-week trading range demonstrates the extreme volatility that has defined investor experience, with shares hitting a high of ₹422.65 on August 25 and touching a low of ₹10.17 on December 31, 2024.

Enhanced Borrowing Capacity for Growth

In a recent regulatory filing, Elitecon International announced significant expansion of its financial capabilities. The company moved to increase its borrowing powers under Section 180(1)(C) of The Companies Act, 2013, up to ₹500 crores, subject to shareholder approval.

The enhanced limit will allow the company to make investments, provide loans, guarantees and security in excess of limits specified under Section 186 of the Companies Act, 2013. This move is expected to provide Elitecon International with greater financial flexibility as it scales up its operations.

Major Export Contract Secured

Earlier this month, the tobacco products manufacturer announced a substantial export win that provides long-term business visibility. On December 15, Elitecon International secured a significant supply contract with international markets.

The company stated that this long-term supply order provides steady export visibility over the contract period and reflects continued demand for its products in international markets. The substantial contract value represents a significant business development for the tobacco products manufacturer.

Market Context and Trading Activity

Wednesday's upper circuit move came as Indian equity markets staged a tentative year-end rebound, with both Sensex and Nifty 50 trading marginally higher after four consecutive days of losses. The stock's sharp move reflected renewed buying interest in a counter that has delivered exceptional long-term gains while testing investor patience with dramatic price fluctuations.

Elitecon International's journey from penny stock status to multibagger performance has been characterized by extreme volatility, making it one of the most closely watched small-cap stocks in the tobacco products sector.