A small-cap stock Kellton Tech Solutions, which has given multibagger returns over the last five years, will likely be in focus on Monday as the company has announced a stock split and fundraising plans.
The company’s board of directors at their meeting held on Saturday June 14, 2025, approved the raising of funds through issue and allotment of warrants and recommended stock split in the ratio of 1:5. An extra-ordinary general meeting (EGM) of the company will be held on Friday, July 11, 2025, to seek approval of shareholders for these matters.
The company’s board approved the stock split in the ratio of 1:5. This means each share, having a face value of ₹5, will be divided into five equity shares having a face value of ₹1 each, fully paid-up.
The record date for the purpose of the subdivision of shares will be decided after the shareholders’ approval through the EGM.
The stock split aims to enhance the liquidity of the company’s equity shares and encourage wider participation of small and retail investors by making the shares more affordable.
The company’s current authorised share capital, 12 crore shares of face value ₹5 each, will increase to 60 crore shares of face value ₹1 each after the proposed stock split. Thus, the total authorised capital will remain unchanged at ₹60 crore.
The company proposes to raise funds by issuing and allotting up to 55 lakh warrants on a preferential basis to certain promoter and non-promoter investors.
Each warrant will be convertible into one equity share of face value ₹5 each. The issue price is set at ₹126 per warrant, which includes the stock’s face value of ₹5 each and a premium of ₹121.
The total fundraising will be up to ₹69.3 crore, subject to approvals from regulatory and statutory authorities and the company’s members at the upcoming EGM.
Post the issuance of convertible warrants, the shareholding of promoter Matnic Finvest LLP in the company will rise from 35.74 per cent to 38.20 per cent. Among non-promoter investors, Karanjit Singh’s stake will increase from 0.10 per cent to 0.77 per cent, while Srinivas Potluri’s holding will go up from 0.34 per cent to 0.62 per cent.
Kellton Tech Solutions’ share price has seen a solid multibagger return of 742 per cent in the last five years. Over the last year, the small-cap stock has jumped 30 per cent.
The stock recently hit a 52-week low of ₹95.05 on April 7 this year and a 52-week high of ₹184.30 on July 15 last year.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
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