Small-Cap IT Stock Unveils 1:5 Stock Split For The 1st Time Since Inception; What Traders Should Do?

Technology consultancy and IT services provider Kellton Tech Solutions Ltd. offers creative solutions and outstanding business value. ERP, digital transformation, and other IT services are among the IT services offered by the organization. It offers a range of services, including digital integration, digital commerce and marketing, and agile software development. Among the platforms the company has created are Kellton4Media, KLGAME, Optima, tHRive, and Kellton4Commerce. For the first time since its founding, the small-cap IT company, which has a market value of Rs 1,209 Cr and is trading on exchanges around RS 124, has announced a stock split. The goal is to increase the liquidity of the company's equity shares on the stock market and promote more participation from small and retail investors by lowering the price of the shares.

Kellton Tech Solutions Stock Split

The Board of Directors "considered, approved, and recommended to the shareholders, an Ordinary Resolution to be passed at the forthcoming Extraordinary General Meeting (EGM), for the alteration of the share capital of the Company by way of sub-division/split of each existing equity share of the Company having a face value of Rs 5/- (Rupees Five only) each, fully paid-up, into 5 (Five) equity shares having a face value of Rs 1/- (Rupee One only) each, fully paid-up. The record date for the purpose of the above sub-division/split of Equity Shares shall be decided after obtaining approval of the shareholders through EGM will be intimated in due course," said Kellton Tech Solutions in a stock exchange filing on Wednesday, 18th June.

Kellton Tech Solutions Fundraising

The Board of Directors also considered and approved "raising of funds through issue and allotment of up to 55,00,000 (Fifty Five Lakhs) warrants, convertible into 1 (One) Equity Share of face value of Rs 05/- (Rupees Five Only) each, to certain Promoter and Non-Promoter Investors, on preferential basis in terms of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended ("ICDR Regulations"), at an Issue Price of Rs 126/- (Rupees One Hundred Twenty Six Only) including premium of Rs 121/- (Rupees One Hundred Twenty one) per warrant (being the price not less than the minimum price determined with reference to the Relevant Date in accordance with Regulation 164 read with Regulation 166A of the ICDR Regulations aggregating up to maximum amount of Rs 69,30,00,000/- (Rupees Sixty-Nine Crore Thirty Lakh only), subject to the approval of regulatory and statutory authorities and the Members of the Company at the ensuing Extra-Ordinary General Meeting," Kellton Tech Solutions further informed stock exchanges.

Kellton Tech Solutions Share Price Target

"Kellton Tech stock price is bearish on the Daily charts with strong resistance at 130. A Daily close below support of 123 could lead to a target of 112 in the near term," commented A R Ramachandran, independent research analyst.

Disclaimer

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