Kellton Tech Solutions Ltd, a Hyderabad-based IT company, recently announced its decision to raise ₹84.5 crore through the issuance of convertible warrants on a preferential basis. This move is aimed at strengthening the company’s financial position and funding its growth initiatives.
The company plans to issue 55 lakh warrants, with each warrant convertible into one equity share at a price of ₹153.63 per warrant. This decision was made in order to attract investment from both promoter and non-promoter entities. Promoter entity Matnic Finvest LLP will receive 45 lakh warrants, while non-promoter investors Karanjit Singh and Srinivas Potluri will receive 7 lakh and 3 lakh warrants respectively.
The payment terms for the warrants require the holders to pay 25% of the consideration upfront, with the remaining 75% to be paid upon conversion within 18 months of allotment. Post-conversion, Matnic Finvest’s shareholding in Kellton Tech will increase from 35.74% to 38.20%, while Karanjit Singh’s stake will rise from 0.10% to 0.77% and Srinivas Potluri’s holding will increase from 0.34% to 0.62%.
Additionally, the company’s board has approved the appointment of Abhaya Shankar as Non-Executive Independent Director. These proposals will be put to shareholder vote at an extraordinary general meeting scheduled for February 6, 2025.
Overall, Kellton Tech’s decision to raise funds through convertible warrants and make key board appointments reflects its commitment to growth and strategic management. Investors and stakeholders will be closely watching the developments to see how the company leverages this capital infusion to drive future success.
