Sellwin Traders announces MOU with Subhshri Overseas for a strategic association

Sellwin Traders Ltd, a Kolkata-based company, has entered into a Memorandum of Understanding (MOU) with the Mumbai-based Rs 250 crore Subhshri Overseas Ltd to establish a strategic collaboration. The agreement outlines plans for a share swap arrangement, creating a holding and subsidiary structure.

Key Highlights:

  • Objective: Sellwin Traders (proposed holding company) will acquire a mutually agreed percentage of shares in Subhshri Overseas Ltd (proposed subsidiary) in exchange for shares in Sellwin Traders. The share swap ratio will be determined by an independent valuation expert.
  • Subhshri Overview: Established in 1971, Subhshri Overseas Ltd specializes in exporting readymade garments, textiles, and imitation jewelry to markets in the Middle East, Africa, and Europe. The group has an average turnover of Rs 250 crore and includes the Government-recognized Star Export House, M S Fashions Wear Pvt Ltd.
  • Governance Structure: The holding company will appoint at least one director to the subsidiary’s board, while Subhshri Overseas Ltd will nominate two directors to Sellwin Traders’ board.
  • Independent Operations: The subsidiary will retain operational independence unless otherwise agreed.
  • Confidentiality & Flexibility: The agreement is non-binding, ensuring confidentiality and allowing termination before formal agreements without liability.

Financial Performance:

Sellwin Traders reported robust growth in Q3 FY25:

  • Revenue: Rs 17.41 crore, up 90% YoY.
  • Net Profit: Rs 75.75 lakh, marking a 257% YoY increase.

For the nine months of FY25, revenue rose 103% YoY to Rs 49.67 crore, and net profit surged nearly threefold to Rs 2.26 crore.

This strategic partnership positions both companies to leverage their synergies for further growth in domestic and international markets.