Kellton Tech to Consider First-Ever Stock Split on June 14; Shares Soar 8%


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.

πŸ“’ 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.

πŸ’Ό Fundraising Also on the Agenda

In addition to the stock split, the board will explore raising capital through multiple avenues, including:

  • Convertible bonds or debentures

  • Preference shares

  • Warrants

  • Qualified Institutional Placement (QIP)

  • Private or preferential placement

These fundraising tools may support Kellton Tech’s expansion and product innovation roadmap.

πŸ“ˆ 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.

πŸ“Š Kellton Tech: By the Numbers

  • 1-Year Return: +33%

  • 2-Year Return: +125%

  • 5-Year Return: +800%+

  • 52-Week Range: ₹95.05 – ₹184.30

  • 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

Comments