This company shares in focus as as it considers conversion of foreign currency convertible bonds | Check details here

Kellton Tech Solutions, an information technology consulting company, has announced that its security issuance committee, part of the board of directors, will meet on July 4, 2025, to consider and approve the conversion of Foreign Currency Convertible Bonds (FCCBs) into equity shares. In May, the company approved the allotment of FCCBs valued at USD 10 million to eligible investors, totaling USD 10,000,000.

As per the information shared with exchanges, the bonds carry a coupon rate of 6.5 per cent per annum with a tenure of 10 years, maturing in 2035. The initial conversion price was set at Rs 106 per equity share, it added.

What Are Foreign Currency Convertible Bonds?

Foreign Currency Convertible Bonds or FCCBs are debt instruments issued by a company. They are generally issued in a foreign currency and can be converted into equity shares of the company at the holder’s discretion. This not only offers companies an opportunity to raise capital internationally but also provides investors with the potential for significant equity upside, a promising aspect of Kellton Tech’s financial strategy.

How FCCBs Work?

When a company issues FCCBs, it receives funds in a foreign currency and pays a regular interest (also known as coupon rates) to the bondholders until maturity of conversion.

For investors, they act as a regular income during the tenure they hold the bonds. Also, they can benefit from potential gains if the stock of the company rises above the conversion price.

1:5 Stock Split

Earlier, the board of directors of the company approved a 1:5 stock split, a move that can be seen as a positive step towards enhancing the liquidity and affordability of the company’s shares. This means that each equity share, previously having a face value of Rs 5, will now be split into five equity shares, each having a face value of Re 1.

Share Price History

The stock’s 52-week high is Rs 184.30, and its 52-week low is Rs 95.05. The company’s market cap, a key indicator of its financial standing, is currently at Rs 1,338.38, providing a comprehensive view of Kellton Tech’s market value.

According to BSE Analytics, the counter has given a multibagger return of 121 per cent in two years. While it has given a positive return of 30.85 per cent in one year, the counter has corrected 13.44 per cent so far this year.

News