By Samannay Biswas
Kellton Tech Solutions, a small-cap IT services firm, will likely be in sharp focus when Indian markets reopen on Monday, July 7, after the company announced a fresh allotment of 11,26,580 equity shares on Friday post-market hours. These shares were issued as part of a Foreign Currency Convertible Bonds (FCCBs) conversion, priced at 鈧106 per share, further strengthening the company鈥檚 equity base. The announcement was made in an exchange filing, wherein Kellton Tech stated that its Security Issuance Committee (SIC) approved the allotment at its meeting held on 4 July 2025. The shares have a face value of 鈧5 and will be listed on both the BSE and NSE, maintaining parity with existing equity shares. 鈥淭he shares allotted are identical in all respects to the existing equity shares of the company and shall rank pari passu with them from the date of allotment,鈥 the filing stated. Impact on Equity Structure Following the allotment, Kellton Tech鈥檚 paid-up share capital has increased from 鈧48.75 crore (comprising 9.75 crore equity shares) to 鈧49.32 crore, now comprising 9.86 crore fully paid-up equity shares. The conversion marks a significant development in the company鈥檚 capital structure, potentially offering greater financial flexibility and reducing foreign currency debt. Stock Performance and Investor Sentiment Ahead of the announcement, Kellton Tech shares closed 4.82% higher at 鈧134.90 on Friday. The stock has seen a 24% surge over the past three months, and while it is down 14% year-to-date, it remains up 21% on a 12-month basis. Over a longer horizon, Kellton Tech has delivered multibagger returns, gaining 796% in five years and 309% over the last decade. These figures underscore its status as a long-term value creator in the small-cap space, despite short-term volatility. About Kellton Tech Solutions Kellton Tech is a mid-sized IT services and digital transformation firm, offering solutions in areas like cloud, mobility, analytics, and blockchain. Headquartered in Hyderabad, it serves clients globally across sectors including BFSI, healthcare, retail, and logistics. The company has a market capitalisation of 鈧1,315 crore and has been actively restructuring its balance sheet and exploring growth opportunities through strategic fundraises. What This Means for Investors The share allotment under FCCB conversion could be seen as a confidence-building measure by the company and may draw interest from retail and institutional investors on Monday. It also signifies progress in deleveraging and bolstering the company’s capital base, which could support future expansion plans. However, market participants will closely monitor whether the increase in share capital leads to any dilution impact or signals improved growth prospects. Get Latest News live on Times Now along with Breaking News and Top Headlines from Business, Companies and around the world.