Shares of Elitecon International, a company that is in the manufacturing of tobacco products, are in focus. The company has informed exchanges that promoter Vipin Sharma is divesting 9.07 lakh equity shares of the company through open market transactions. According to the information shared, the process will generate proceeds of approximately Rs 50 crore, and the entire amount will be reinvested into the company as an interest-free unsecured loan.
Structure of Reinvestment
The filing said that the interest-free unsecured loan to the company will be re-payable by the company at its own discretion when it is in a healthy financial position and can repay the loan without any financial burden on its finances. The move is expected to strengthen the company’s balance sheet without any interest burden.
Share Price
Meanwhile, shares of the company are locked in a 5 per cent lower circuit at Rs 550.40. The stock had closed at Rs 579.35 on the BSE in the last trading session. This is the second consecutive day when the counter has hit lower circuit.
Technically, the stock trades higher than 20-day, 50-day, 100-day and 200-day moving averages but lower than 5-day moving averages.
Share Price History
According to BSE Analytics, the counter has given a multibagger return of 586.28 per cent in six months. It has gained 431.02 per cent so far this year.
Stock Market Today
Benchmark indices Sensex and Nifty began the trade with modest gains on Thursday and later traded lower in-tandem with sluggish global market trends amid growing tensions in the Middle East.
Fresh foreign fund outflows also dented investors' sentiment.
The 30-share BSE Sensex climbed 108.02 points to 82,623.16 in early trade. The 50-share NSE Nifty went up by 38.7 points to 25,180.10.
However, later both the benchmark equity indices slipped in the negative territory and were trading lower.
The BSE benchmark gauge quoted 178.60 points lower at 82,331.42, and the Nifty traded 57.15 points down at 25,093.75.
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
