Kellton Tech Solutions Limited has informed the Exchange regarding Board meeting held on May 13, 2025 for the FCCB issuance and other associated matter
KELLTONTEC · price
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Kellton Tech Solutions' Board, at its May 13, 2025 meeting, approved the issuance of US$ 10,000,000 (about ₹83-84 crore depending on exchange rate) worth of 6.50% Senior Unsecured Foreign Currency Convertible Bonds (FCCBs) maturing in 2035. This is a 10-year convertible bond issue that gives bondholders the option to convert their holdings into equity shares of the company at a later date. The regulatory floor price for conversion has been fixed at ₹107.00 per share. The company had already received shareholder approval via postal ballot (Dec 2024–Jan 2025) and in-principle approvals from BSE and NSE in February 2025. Final identification of investors will happen after the open offer process and will be communicated later.
The FCCB issuance will bring in foreign currency funding of ~US$ 10 million to strengthen Kellton's balance sheet without immediate dilution, though bondholders can later convert into equity at ₹107+. The 6.50% coupon is a manageable cost for a 10-year tenor. Shareholders should watch for the final investor list and any potential dilution from bond conversions at the floor price.