Sellwin Traders Limited has signed an MoU with Shivam Contracting Inc. to invest up to USD 6 million, acquiring a potential 60% stake in the U.S. construction company, while also entering the Gulf IT services market through another significant acquisition.

Information on the Target

Sellwin Traders Limited (BSE: 538875) has entered into a Memorandum of Understanding (MoU) with Shivam Contracting Inc. (SCI), a U.S.-based construction firm. The arrangement entails an investment of up to USD 6 million (approximately ₹52 crore), which will be executed via the issuance of Sellwin's shares priced at a minimum of ₹18 per share. This move could translate into a maximum stake of 60% for Sellwin in SCI.

SCI has committed to repatriating the invested funds to India within two years after the release of each tranche. Additionally, it assures an annual return of at least 7%, thus providing a stable and risk-adjusted return on investment for Sellwin's shareholders. A comprehensive valuation of SCI is expected to be finalized by December 31, 2025.

Industry Overview in the Target’s Specific Country

The construction industry in the United States plays a crucial role in the national economy, generating substantial revenue and creating millions of jobs. As the nation recovers f