IT Stock Alert: 1:5 Stock Split In Due Course, Record Date To Be Set, Fundraising Plan Soon; Buy?

Kellton Tech Solutions' movement on the BSE/NSE during the last week was confined to a relatively small range of Rs 128-Rs 131. Overall, the stock climbed by around 4.70% in the past month and dropped by nearly 18% in the previous six months. Nevertheless, Kellton has recovered steadily over the past year, rising from a 52-week low of around Rs 95.05 to a high of about Rs 184.30 before reverting to its existing levels. With current trading between Rs 128 and Rs 132, which reflects stabilization after touching Rs 184 last year, the volume has been mild. However, the stock will be in the headlines in the days to come because of the board meeting this week to debate the fundraising strategy, in addition to the stock's recent announcement of a 1:5 stock split with a record date pending.

Kellton Tech Solutions Fundraising Plan

"We hereby inform that a meeting of the Security Issuance Committee of the Board of Directors of Kellton Tech Solutions Limited is scheduled to be held on Friday, July 04, 2025, inter alia, to consider and approve the conversion of Foreign Currency Convertible Bonds (FCCBs) into equity shares of the Company and to discuss associated matters, in continuation of the earlier fund-raising approved and allotted by the Committee," said the IT company in a stock exchange filing.

Kellton Tech Solutions Stock Split

"Based on the recommendation of the Stakeholders Relationship Committee (SRC), the Board of Directors of the Company at its meeting held on June 14, 2025, approved and recommended for the approval of members, the subdivision (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. Simultaneously, the Board also proposed alteration of the Capital Clause (Clause V) of the Memorandum of Association of the Company, consequent upon such sub-division of shares," Kellton Tech Solutions said in a statement.

For the purpose of the above-mentioned 1:5 stock split, the Board hasn't declared a record date yet.

Kellton Tech Solutions Share Price Target

"Kellton Tech stock price is bearish on the Daily charts with strong resistance at 134. A Daily close below support of 127 could lead to a target of 114 in the near term," commented A R Ramachandran, independent research analyst.

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