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Kellton Tech Solutions, the small-cap IT services player, has given a whopping 750% return in five years, and is a hands-down multibagger on the Indian exchanges. In an effort to fuel growth even more rapidly and create shareholder wealth, the company has undertaken a series of high-value corporate moves, such as a 1:5 stock split and a substantial fund-raising exercise via issuing warrants.
Key Highlights:
1:5 Stock Split Declared:
The board of Kellton Tech has approved a stock split, reducing the face value of each equity share to ₹1 from ₹5. This will increase the number of outstanding shares fivefold, making the stock liquid and accessible to small investors.
Fundraise via Warrants:
The company will raise fresh funds by issuing warrants, which can be exercised to be converted into equity shares in the future. This raising of capital will provide Kellton Tech with extra funds to be utilized in new projects, acquisitions, and expansion plans.
Stellar 5-Year Performance:
Kellton Tech shares have risen by 853% over the past five years, demonstrating strong investor confidence and steady business growth. The shares rose by 33% in the duration of the past year alone, with a 27% rise in the scant last three months.
Robust Q4 FY25 Performance:
For Q3 March 2025, revenue was up 15.5% year-on-year at ₹287.3 crore. Net profit at ₹19.2 crore, however, was down year-on-year, although the company added nine new clients and saw good EBITDA margins of 10.5%.
Market Reaction:
Following the announcement, Kellton Tech shares jumped nearly 10% during the day, as investors showed keen interest in the proposed stock split and capital injection.
What's Next? The board meeting on June 14 will cement the plans for the stock split and the fund-raising. Investors want to know how the new money will be utilized and if the company can sustain its record growth trend. "A green signal on stock split and fund raising can drive further upside, given the company's robust historical returns and rising investor enthusiasm." — HDFC Sky
Source: HDFC Sky
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