Over 10.60% Rally In 5 Sessions: This Small-Cap IT Stock Issues USD 10 Mn FCCBs

On Monday, the shares of Kellton Tech Solutions ended 0.61% higher on the NSE at Rs 118.70 per share with a market cap of Rs 1.15KCr. The surge has followed the announcement by the company regarding plans to issue Foreign Currency Convertible Bonds (FCCB) valued at USD 10 million. These bonds, which are 6.5 cent senior unsecured bonds with a 2035 maturity date, have already been sanctioned by the Company's Securities Issuance Committee.

The Board "approved the 'Relevant Date' for the purpose of the Issue of FCCBs as May 13, 2025 in accordance with the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993, as amended ("FCCBs Guidelines") and accordingly, the regulatory floor price as determined in accordance with the FCCBs Guidelines is Rs.107.00," informed Kellton Tech Solutions to stock exchanges on Tuesday.

The National Stock Exchange of India Limited (NSE) approved in principle the proposed preferential offer of 55,00,000 equity shares with face values of Rs 5 each last month, April 22, 2025.

Financially speaking, Kellton Tech Solutions' net profit increased 157.32% to Rs 20.92 crore in the quarter that ended in December 2024 from Rs 8.13 crore in the quarter that concluded in December 2023. Compared to Q3FY24, when sales were Rs 245.44 crore, Q3FY25 saw a 13.62% increase to Rs 278.87 crore. Kellton Tech Solutions is yet to declare its financial results for the quarter ended in March 2025 (Q4FY25).

Kellton Tech Solutions has a debt-to-equity ratio of 0.37, which is subpar, and a PE ratio of 84.26, which is excessive and somewhat expensive. Kellton Tech Solution's most recent EPS is Rs 1.30. At Rs 184.30 on July 15, 2024, KELLTONTEC had its highest price ever, while on March 25, 2020, it hit its lowest price ever at Rs 6.55. As of May 13, 2025 | 18:42 IST, Kellton Tech Solutions' share price has a 52-week high of Rs 184.30 and a low of Rs 85.00.

Digital transformation, ERP, and other IT services are among the many IT services and solutions provided by Kellton Tech Solutions Limited (KELLTONTEC), an Indian digital transformation firm. It has a worldwide presence in the US, Europe, and Asia and caters to a wide range of clients, including Fortune 500 businesses, startups, and SMBs. IoT solutions, digital commerce, and agile software development are some of Kellton's specialities.