IT Stock In Focus! Board Declares 1:5 Stock Split & Fundraising Deal of Rs 69.30 Cr; Do You Own?

Kellton Tech Solutions, a small-cap IT services firm, moves into the spotlight on Monday after its board, meeting Saturday 14 June 2025, cleared plans for a 1:5 share split and a fresh fundraising drive.

"We wish to inform that the Board of Directors of the Company have at their meeting held today, i.e., Saturday June 14, 2025 inter alia, considered and approved raising of funds through issue and allotment of up to 55,00,000 (Fifty Five Lakhs) warrants, convertible into 1 (One) Equity Share of face value of Rs 05/- (Rupees Five Only) each, to certain Promoter and Non-Promoter Investors, on preferential basis in terms of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("ICDR Regulations"), at an Issue Price of Rs 126/- (Rupees One Hundred Twenty Six Only) including premium of Rs 121/- (Rupees One Hundred Twenty one) per warrant (being the price not less than the minimum price determined with reference to the Relevant Date in accordance with Regulation 164 read with Regulation 166A of the ICDR Regulations aggregating up to maximum amount of Rs 69,30,00,000/- (Rupees Sixty-Nine Crore Thirty Lakh only), subject to the approval of regulatory and statutory authorities and the Members of the Company at the ensuing Extra-Ordinary General Meeting," said Kellton Tech Solutions in a stock exchange filing.

The Board also "considered, approved, and recommended to the shareholders, an Ordinary Resolution to be passed at the forthcoming Extraordinary General Meeting (EGM), for the alteration of the share capital of the Company by way of sub-division/split of each existing equity share of the Company having a face value of Rs 5/- (Rupees Five only) each, fully paid-up, into 5 (Five) equity shares having a face value of Rs 1/- (Rupee One only) each, fully paid-up. The record date for the purpose of the above sub-division/split of Equity Shares shall be decided after obtaining approval of the shareholders through EGM will be intimated in due course," Kellton Tech Solutions informed stock exchanges.

The planned share issue must still receive approval from both shareholders and the authorities charged with oversight. Should every warrant be taken up, Matnic Finvest LLP, the company's promoters, will see their holding climb from 35.74 percent to about 38.20 percent. Outside the promoter group, Karanjit Singh interest is set to increase from 0.10 percent to roughly 0.77 percent, while Srinivas Potlur's shares will rise from 0.34 percent to nearly 0.62 percent.

Kellton Tech has delivered a multibagger return of 742% over the last five years, and its share price has added about 30% during the past year. The stock touched a 52-week low of Rs 95.05 on April 7, 2025, and reached a 52-week high of Rs 184.30 on July 15, 2024.

Kellton Tech operates as a worldwide IT consultancy and services provider for startups, small firms, and Fortune 500 corporations alike. The company works across the United States, Europe, India, and the Asia-Pacific region, and it employs more than 1,800 specialists who deliver digital transformation solutions to clients around the globe. Kellton has made the Deloitte Technology Fast 50 India List four times and has appeared in Forbes Asia Best Under a Billion.