Kellton Tech Solutions, a rising smallcap IT firm, is in the spotlight after announcing its first-ever stock split proposal. In a regulatory filing on Thursday, June 12, the company disclosed that its board of directors will convene on Saturday, June 14, to consider splitting its equity shares and evaluating potential fund-raising plans.
📢 Stock Split in the Works
This would mark the company’s maiden stock split, a move aimed at enhancing share liquidity and accessibility for retail investors. The board will review the sub-division of existing equity shares with a face value of ₹5 each, signaling a major structural change in the company’s capital base.
“To consider the proposal of alteration of the share capital of the company by sub-division/split of existing equity shares…” the company said in its exchange filing.
A stock split is a strategic corporate action that reduces the share price proportionally while increasing the number of shares held by investors, often leading to improved market participation.
💼 Fundraising Also on the Agenda
In addition to the stock split, the board will explore raising capital through multiple avenues, including:
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Convertible bonds or debentures
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Preference shares
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Warrants
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Qualified Institutional Placement (QIP)
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Private or preferential placement
These fundraising tools may support Kellton Tech’s expansion and product innovation roadmap.
📈 Market Reaction
Following the announcement, Kellton Tech shares jumped over 8%, trading at ₹137 per share by 11:30 AM on Thursday. Investor interest surged, with over 22 lakh shares changing hands by mid-morning.
📊 Kellton Tech: By the Numbers
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1-Year Return: +33%
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2-Year Return: +125%
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5-Year Return: +800%+
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52-Week Range: ₹95.05 – ₹184.30
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Market Capitalisation: ₹1,352 crore
The stock’s momentum reflects growing investor confidence as the company continues to ride the wave of digital transformation in the IT services sector
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