Kellton Tech Solutions Ltd. has drawn investor attention with its recent board-approved decisions. The company announced a stock split and a capital raise plan through convertible warrants.
Kellton Tech Solutions Ltd. has announced a stock split in the ratio of 1:5, following a board meeting held on June 14, 2025. The sub-division will split each fully paid-up equity share with a face value of ₹5 into 5 equity shares with a face value of ₹1. The initiative aims to increase market liquidity and encourage greater retail investor participation by making the shares more affordable.
The record date for the share split will be finalised and announced after receiving shareholder approval in the forthcoming Extraordinary General Meeting (EGM).
As of 1:47 PM, Kellton Tech’s share price remained flat at ₹130 on the National Stock Exchange.
In addition to the stock split, the board approved raising capital through the preferential issue of up to 55 lakh convertible warrants. Each warrant is priced at ₹126, comprising a face value of ₹5 and a premium of ₹121. These warrants will be convertible into equity shares, resulting in a total potential capital infusion of ₹69.3 crore.
Three investors will participate in the issue:
Post-issue, Matnic Finvest LLP’s holding is expected to increase to 38.20%.
Following the split, the authorised share capital will remain ₹60 crore. However, the number of equity shares will rise from 12 crore shares of ₹5 each to 60 crore shares of ₹1 each. Likewise, the issued and paid-up capital will transition from 9.75 crore shares of ₹5 each to 48.75 crore shares of ₹1 each, with the total paid-up value unchanged at ₹48.75 crore.
To reflect the revised capital structure, Kellton Tech has proposed amending Clause V of its Memorandum of Association. The revised clause will define the authorised capital as ₹60 crore divided into 60 crore equity shares of ₹1 each.
An Extraordinary General Meeting is scheduled for July 11, 2025, via video conferencing. At the meeting, shareholders will vote on the proposed stock split, capital raise through warrants, and changes to the Memorandum of Association.
Kellton Tech’s twin announcements of a stock split in the 1:5 ratio and a ₹69.3 crore capital infusion are aimed at enhancing market participation and funding future growth. Investors may follow official updates for further clarity as the company proceeds towards its EGM on July 11, 2025.
Read More: BigBloc Construction Subsidiary Gets Shareholder Nod For IPO; Know All The Details!
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 17, 2025, 2:57 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates