Kellton Tech’s board approved raising ₹69.3 crore via convertible warrants and a 1:5 stock split to improve share liquidity. The fundraising includes allotments to promoter Matnic Finvest LLP and two non-promoter investors, subject to shareholder approval in the upcoming EGM.
Kellton Tech Solutions Limited announced the outcomes of its Board of Directors meeting held on Saturday, June 14, 2025. The board approved significant proposals, including raising funds through the issuance of convertible warrants and a subdivision of the company's equity shares. As of 3:05 am IST, Kellton Tech's share price advanced to ₹130.25, up by 0.12%.
On a year-to-date basis, the stock has declined by 13.72%, while in the last 12 months it is up by 27.92%.
The Board has approved raising up to ₹69.30 crore through the issuance of 55,00,000 (55 lakh) convertible warrants, each priced at ₹126 (including a ₹121 premium), on a preferential basis to select Promoter and Non-Promoter Investors. These warrants, each convertible into one equity share of ₹5 face value, will be issued subject to regulatory, statutory, and shareholder approvals at the upcoming EGM. Investors must pay 25% of the issue price at allotment, with the remaining 75% payable upon conversion, which can occur in one or more tranches within 18 months.
Promoter Matnic Finvest LLP will be allotted 45 lakh warrants for ₹56.70 crore, while Non-Promoter investors Karanjit Singh and Srinivas Potluri will receive 7 lakh and 3 lakh warrants, investing ₹8.82 crore and ₹3.78 crore respectively.
Furthermore, the Board considered, approved, and recommended to shareholders an Ordinary Resolution for the alteration of the company's share capital through a sub-division (stock split) of each existing equity share.
Currently, each equity share has a face value of ₹5, fully paid-up. This will be subdivided into 5 (Five) equity shares, each with a face value of ₹1, fully paid-up. This means the share of the company will get split in the ratio of 1:5.
The rationale behind this split is to enhance the liquidity of the company's equity shares in the stock market and encourage wider participation from small and retail investors by making shares more affordable. The record date for this sub-division will be determined and intimated after obtaining shareholder approval through the EGM.
In the March 2025 quarter, the company reported a net revenue from operations of ₹286.30 crore, up 15.54% from ₹247.80 crore in the same quarter last year. However, profit after tax declined sharply by 61.34% to ₹9.20 crore compared to ₹23.80 crore in March 2024. The PAT margin also narrowed to 6.70% from 9.60%, reflecting a weaker profitability performance during the quarter.
For the full financial year ended March 2025, net revenue from operations rose to ₹1,097.80 crore, marking an annual growth of 11.69% over ₹982.90 crore in FY24. Profit after tax increased to ₹79.80 crore from ₹63.90 crore, representing a growth of 24.88%. The annual PAT margin improved to 7.30%, up from 6.50%.
Kellton Tech Solutions Ltd offers services in digital transformation, ERP and other IT services. It has operations across the U.S., Europe, India and Asia-Pacific with a team of 1,800 employees. Agile software development, digital commerce & marketing, digital integration, outsourced product development, platform modernisation, professional services, technology consulting, testing & automation and others.
Disclaimer: The article is for informational purposes only and not investment advice.
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