Kellton Tech Powers Growth with $10 Million FCCB Issue, Stock Jumps on Growth Potential

Kellton Tech Solutions Ltd raised $10 million (around ₹85.3 crore) successfully through the issue of Foreign Currency Convertible Bonds (FCCBs), a major achievement in its growth agenda.

 

On May 14, 2025, the board cleared the FCCB issue. These senior unsecured bonds have a 6.5% coupon rate and a 10-year and one-month maturity period. The minimum conversion price has been fixed at ₹106 per equity share, which could result in the issue of almost 8 million new shares on a full conversion. This capital will be utilized to bolster Kellton Tech's balance sheet, finance expansion plans, and build its service capabilities in enterprise software, cloud, and digital integration.

 

The market greeted the development favorably, and the shares of Kellton Tech climbed more than 2.7% to ₹118.50. The stock has returned a staggering 700% in the past five years and recovered 38% from its 52-week low, evidence of robust investor faith.

 

Kellton Tech clarified that no bonus or preferential shares will be issued with the FCCB, ensuring transparency. There is no track record of defaults on FCCBs by the company, enhancing investor confidence.

 

Known worldwide, Kellton Tech has more than 1,800 professionals on its rolls and has been listed on Deloitte's Technology Fast 50 India and Forbes Asia's "Best Under a Billion" rankings. This issue of FCCBs puts Kellton Tech in a position to drive its expansion and leverage future opportunities in digital transformation.

 

Sources: Times Now News, Business Standard, DSIJ