Cigarettes & Tobacco Stock Raises Borrowing Power To Rs 500 Cr After Issuing Dividend & Stock Split

Following the announcement of significant decisions at its most recent board meeting, which took place on December 26, 2025, Elitecon International Limited, a small-cap FMCG firm that deals in cigarettes and tobacco products, attracted the attention of investors. The BSE-listed company has proposed significant development intentions ahead by proposing a major extension of its borrowing capacity and investment limits.

Subject to shareholder approval, the Board has announced an increase in borrowing powers under Section 180(1)(C) of The Companies Act, 2013 up to Rs. 500 crores. Additionally, they authorized the issuance of loans, guarantees, security, and investments in excess of the restrictions outlined in section 186 of the Companies Act of 2013, subject to shareholder approval.

Additionally, Mr. Aakash Goel, the proprietor of G Aakash & Associates, Company Secretaries, was appointed by the Board as a scrutinizer for the company's upcoming EGM.

The Board has fixed 22.12.2025 as the cut-off date for dispatching the Notice of the ensuing EGM to the members of the company and determining the eligibility of shareholders to vote at the ensuing EGM. Whereas the remote E-voting shall run from Monday, 29.12.2025 (09:00 A.M.) to Tuesday, 27.01.2026 (5:00 P.M).

The stock may stay in focus as shareholders weigh in on actions that might change the company's financial and strategic focus, with approvals planned through a postal ballot and an upcoming EGM. In the near future, market players will be closely monitoring how these changes may affect Elitecon's balance sheet, potential investments, and broader stock sentiment.

The above announcement followed Elitecon International's execution of a 10:1 stock split with a record date of June 25, 2025, which subdivided each Rs 10 face value share into 10 shares of Rs 1 face value in order to increase investor affordability and liquidity and make the stock more accessible.

Elitecon International Limited has captured attention recently when it revealed a significant action by its promoters and issued a public notice confirming the payment of its interim dividend for FY26. On November 5, 2025, the BSE-listed firm announced an interim dividend of 5% per equity share (Rs 1 face value), with November 12, 2025 set as the record date for determining eligible shareholders. The company acknowledged the effective payment of the full interim dividend amount to all eligible non-promoter shareholders in accordance with regulatory norms.

What stands out, however, is the voluntary decision by promoter-category shareholders to relinquish their full dividend entitlement, amounting to nearly Rs 47.5 million. This action has been framed as a strategic decision that will support future goals for development and expansion, bolster internal financial resources, and satisfy working capital requirements without affecting the company's equity structure.

Elitecon International Limited is a publicly listed global enterprise with diversified operations spanning tobacco products, fast-moving consumer goods (FMCG), and international exports.