IT Stock Set To Receive USD 10 Million Through FCCBs, Issue To Open On May 16; Do You Own?

The share price of Kellton Tech Solutions surged by 1.3% to reach Rs 117.10 on the NSE during Thursday's intra-day trade. The stock is still trading 36% below its 52-week high of Rs 184.30 recorded in July 2024, but bounced back 38% from its 52-week low of Rs 85, which was recorded in June 2024.

Share price increase came after the company's announcement of raising USD 10 million through the issue of Foreign Currency Convertible Bonds (FCCBs). The bonds have a coupon of 6.5% with a maturity date set in 2035. Also, the floor price for conversion has been set to Rs 106 per equity share. Strategic fundraising aimed to improve investor sentiment, which greatly aided Kellton Tech's capital structure.

As per the regulatory filing of May 14, 2025, Kellton Tech disclosed that the Board of Directors has approved the FCCB issuance and has delegated the entire process to the Securities Issuance Committee. The FCCBs are issued internationally as a senior unsecured instrument and would have a tenor of 10 years and 1 month from complete payment.

Considering the floor price and a conversion rate of Rs 85.3 for every dollar, the issuance of FCCB will equate to a value close to Rs 85.3 crore. In full conversion, approximately 80.47 lakh equity shares would be allotted, having a par value of Rs 5 per share. The company anticipates that the allotment will take place within a month of the closing date of the issuance.

The issuer also explained that no such defaults existed earlier against the FCCB and there is no intention to contemplate preferential or bonus shares at the moment. The capital raising initiative portrays Kellton Tech's dedication towards pursuing different avenues disregarded in the past for efficient capital structure in the company, aimed at accelerating growth in the upcoming years.

This follows Kellton Tech stock's prominent recovery in May, during which the stock has increased almost 9% this month after declining for four months straight. The stock saw a dip of 0.5% in April, 1.4% in March, a staggering 25.4% in February and 3% in January. In spite of the recent fluctuations, the stock has gained 20% in the past year and 700% over five years. This surge showcases the investors' trust in the company's long-term growth potential.

Kellton Tech's market value, cutting across Rs 1,100 crore, provides further recognition as a global technology consulting and IT services provider. The company, which serves clients from startups to Fortune 500 companies, operates across the US, Europe, India, and the Asia-Pacific region with a vision stating "Infinite possibilities with technology". The company employs over 1,800 professionals worldwide.

The $300 million company had also earned recognition from the industry itself, listed four times on Deloitte Technology Fast 50 India and labelled Forbes Asia "Best Under a Billion" companies.

Kellton's opening FCBC issuance will happen on May 16, where market watchers are paying attention to what Kellton will do to represent the execution and long-term effect on the shareholder value.