IT penny stock below Rs 30: Company approved allotment of 40,23,500 fully paid-up equity shares upon conversion of FCCBs

DSIJ Intelligence-1 / 10 Sep 2025/ Categories: Penny Stocks, Trending

IT penny stock below Rs 30: Company approved allotment of 40,23,500 fully paid-up equity shares upon conversion of FCCBs

The stock is up 38.5 per cent from its 52-week low of Rs 19.01 per share and has given multibagger returns of 210 per cent in 5 years.

The Board of Directors of Kellton Tech Solutions Limited has approved the allotment of 40,23,500 fully paid-up equity shares with a face value of Rs 1 each. These shares were issued at a price of Rs 21.2 per share, which includes a premium of Rs 20.2. This allotment resulted from the conversion of Foreign Currency Convertible Bonds (FCCBs). Following this conversion, the company's paid-up equity share capital increased from Rs 51,37,22,420 (comprising 51,37,22,420 shares) to Rs 51,77,45,920 (comprising 51,77,45,920 shares). The company's shares are listed on the BSE Limited and the National Stock Exchange of India Limited, which granted their in-principle approval for this transaction on February 20, 2025. The total number of issued equity shares after this issue is 51,77,45,920.

In addition to the FCCB issuance, the Board has also proposed a Qualified Institutional Placement (QIP) to raise to Rs 250 crore. This second fundraising effort will involve the issuance of various securities, including equity shares, debentures, or other instruments convertible into equity, in one or more tranches. To support these fundraising initiatives, the company has also recommended increasing its authorised share capital from Rs 60 crore to Rs 100 crore and amending its Memorandum of Association accordingly.

About the Company

Kellton Tech, a "Born Digital" technology consulting and services company, helps diverse clients from startups to Fortune 500s achieve digital transformation and competitive advantage. Renowned for its deep domain and tech expertise, Kellton Tech acts as a trusted partner. The rapidly growing company has been recognised on Deloitte's "Technology Fast50" India list four times, Forbes Asia's "Best Under a Billion" list and as a top tech workplace, with 1500 employees across the US, Europe, India and Asia-Pacific.

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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 15x whereas the industry PE is 30x. The company has a market cap of over Rs 1,300 crore. The stock is up 38.5 per cent from its 52-week low of Rs 19.01 per share and has given multibagger returns of 210 per cent in 5 years.

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