Hyderabad-based Kellton Tech Solutions Ltd announced today that its board has approved raising ₹84.5 crore through the issuance of convertible warrants on a preferential basis. The IT company will issue 55 lakh warrants, each convertible into one equity shares at ₹153.63 per warrant.

The shares of Kellton Tech Solutions Ltd were trading at ₹161.04 down by ₹5.91 or 3.54 per cent on the NSE today at 12.05 pm.

The company will allot 45 lakh warrants to promoter entity Matnic Finvest LLP, while non-promoter investors Karanjit Singh and Srinivas Potluri will receive 7 lakh and 3 lakh warrants respectively. The warrant holders will pay 25 per cent of the consideration upfront, with the remaining 75 per cent due upon conversion within 18 months of allotment.

Post-conversion, Matnic Finvest’s shareholding in Kellton Tech will increase from 35.74 per cent to 38.20 per cent. Karanjit Singh’s stake will rise from 0.10 per cent to 0.77 per cent, while Srinivas Potluri’s holding will increase from 0.34 per cent to 0.62 per cent.

The board also 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, to be held through video conferencing.