Kellton Tech to issue $10 million in FCCBs at ₹106 floor price; bond issuance opening on May 16
Kellton Tech Solutions set to raise capital through 6.5 percent FCCBs maturing in 2035; Share price gains as investors react to issuance terms.
Kellton Tech Solutions has announced the issuance of Foreign Currency Convertible Bonds (FCCBs) worth USD 10 million, with a floor price set at ₹ 106 per equity share. The announcement comes ahead of the bond issuance opening on May 16, 2025, following board approval granted earlier this week.
In a regulatory filing, the company disclosed that the Security Issuance Committee, following the board meeting held on May 14, 2025, has been authorised to manage the entire FCCB issuance process.
The FCCBs will be issued internationally and are structured as 6.5 percent senior unsecured bonds with a maturity period extending to 10 years and 1 month from the date of full payment. The floor price for conversion has been determined in accordance with the FCCB Scheme, using May 14, 2025, as the relevant date for pricing calculations.
At a conversion rate of INR 85.3 per USD, the bond issuance translates to approximately ₹ 85.3 crore, which upon full conversion, would result in the allotment of nearly 80.47 lakh equity shares of ₹ 5 each. The company expects to complete the allotment of FCCBs within 30 days from the issue's closing date.
Notably, the filing also clarified that there have been no defaults in the company's past FCCB obligations, and there is no proposal to issue preferential or bonus shares alongside this offering. The move underscores Kellton Tech's focus on shoring up its capital structure to support future growth through diversified funding channels.
The market responded positively to the development. On Thursday, May 15, Kellton Tech's shares rose as much as 1.3 percent in intra-day trade to touch ₹ 117.10. While still over 36 percent below its 52-week high of ₹ 184.30 recorded in July 2024, the stock has shown signs of recovery. It has gained nearly 38 percent from its 52-week low of ₹ 85, hit in June 2024.
Over the past year, the stock has appreciated 20 percent. Notably, after enduring four straight months of losses, the stock has rebounded in May with a near 9 percent gain so far. It had declined 0.5 percent in April, 1.4 percent in March, 25.4 percent in February, and 3 percent in January.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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