Multibagger IT stock below Rs 150 in focus as the company approved Rs 69.3 crore of preferential warrants and a 1:5 equity share split
The stock is up over 30 per cent from its 52-week low of Rs 95.05 per share and a whopping 730 per cent in 5 years.
The Board of Directors of Kellton Tech Solutions Limited has approved a significant financial restructuring, including a preferential issue of warrants and a stock split. The company will issue up to 55,00,000 warrants to certain promoter and non-promoter investors at an issue price of Rs 126 per warrant, amounting to a maximum of Rs 69.30 crore. Each warrant is convertible into one equity share of Rs 5 face value, exercisable within 18 months from allotment, with 25 per cent of the consideration payable upfront and the remaining 75 per cent upon conversion. This preferential issue is subject to regulatory and shareholder approval at an upcoming Extra-Ordinary General Meeting (EGM).
In addition to the warrant issue, the Board has also recommended a stock split, where each existing equity share with a face value of Rs 5 will be subdivided into five equity shares with a face value of Re 1 each. This stock split aims to enhance the liquidity of the company's shares in the market and encourage broader participation from small and retail investors by making the shares more affordable. The record date for this sub-division will be announced after shareholder approval at the EGM, and the split is expected to be completed within approximately three months of receiving shareholder and regulatory approvals.
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About the Company
Kellton is a global technology consulting and IT services company founded on the belief of exploring ‘Infinite Possibilities with Technology.’ Kellton helps businesses of all sizes, ranging from startups to SMEs and Fortune 500s, build disruptive digital solutions. With operations across the US, Europe, India, and the Asia Pacific and a global team of 1800+ employees, Kellton enables clients to use technology as their competitive advantage. Kellton has been placed four times on the Deloitte Technology Fast 50 India List and recognised by Forbes Asia as one of the Top 200 companies in their ‘Best Under a Billion’ List.
Kellton Tech Solutions concluded FY25 with strong financial results, reporting an 11.7 per cent increase in annual net sales to Rs 1098 crore and a 23.4 per cent rise in net profit to Rs 80 crore compared to FY24. This growth was bolstered by their strategic focus on AI and the addition of nine new client wins in Q4FY25, contributing to the quarter's net sales of Rs 286 crore and net profit of Rs 19 crore.
The company's promoters hold 40.82 per cent stake as of March 2025 and the stock trades at a PE of 15x whereas the industry PE is 28x. The company has a market cap of over Rs 1,200 crore. The stock is up over 30 per cent from its 52-week low of Rs 95.05 per share and a whopping 730 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.