AI Penny Stock Below Rs 30: Board approved the allotment of 55,00,000 warrants on a preferential basis

Kellton Tech Solutions Ltd's Board of Directors has approved the preferential allotment of 55 lakh warrants, which are convertible into one equity share each with a face value of Rs 5. This was decided via a resolution on September 19, 2025. Key terms for the issue include the immediate receipt of 25 per cent of the total consideration for the warrants, with the remaining 75 per cent due upon conversion. The warrants are convertible into equity shares within 18 months from the allotment date, and they can be converted in one or more tranches. These fully paid warrants will be issued in dematerialised form and will have equal standing with existing shares, subject to the lock-in requirements of SEBI. The Board has authorised the Securities Issuance Committee to oversee all related activities, including the issuance, allotment, and eventual listing of the shares.

Additionally, the company has partnered with Hungary-based E-Group to create a "sovereign AI ecosystem" under the EU-India Framework Agreement. This collaboration, based on E-Group's Budapest Initiative, aims to build an "AI Gigafactory" with Kellton providing its technology and software development expertise. The partnership will focus on a human-centric AI ecosystem that combines Europe's commitment to trusted innovation and sovereignty with India's technology and delivery capabilities. The goal is to develop a framework for AI, data processing, and cloud infrastructure that prioritises transparency, security, and resilience. This agreement strengthens technological ties and promotes responsible innovation between the two regions.

About the Company

Kellton Tech Solutions Ltd., listed on the NSE and BSE, is a global leader in AI and digital transformation with its headquarters in Hyderabad, India. The company, which operates on the philosophy of "Infinite Possibilities with Technologies," employs over 1,800 people across its offices and delivery centres in the United States, Europe and Asia-Pacific. Kellton offers a wide range of transformative solutions, including Agentic AI, cloud engineering, enterprise application modernisation and data analytics, serving clients across multiple sectors like BFSI, manufacturing, retail and healthcare. The company's expertise has been recognised by top analysts, earning it a spot as a leader in Zinnov Zones for ER&D Digital and Experience Engineering and commendation from ISG and Avasant for its SAP services.

For the first quarter ending June 30, 2025, Kellton Tech Solutions Ltd. reported a consolidated revenue of Rs 296.10 crore, which represents a 12.8 per cent year-over-year and 3.1 per cent quarter-over-quarter increase. Its net profit for the quarter was Rs 22.70 crore, showing a 13.5 per cent year-on-year rise, with an EPS of Rs 2.32. In FY25, the company reported an 11.7 per cent increase in annual net sales to Rs 1,098 crore and a 23.4 per cent rise in net profit to Rs 80 crore compared to FY24.

The company's 1:5 stock split became effective on July 28, 2025. Each equity share with a face value of Rs 5 has been converted into five shares with a face value of Re 1 each. FIIs bought 2,06,150 shares and increased their stake to 1.27 per cent in Q1FY26 compared to Q4FY25. The company's promoters hold 40.78 per cent stake as of June 2025 and the stock trades at a PE of 16x whereas the industry PE is 33x. The company has a market cap of over Rs 1,200 crore. The stock is up 44 per cent from its 52-week low of Rs 19.01 per share and has given multibagger returns of 175 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.