Small-cap stock under ₹50: The board of directors of Kellton Tech Solutions Limited has declared raising funds through the rights issue. The small-cap took a decision in this regard at the board meeting on Saturday, declaring that the offer size would not exceed ₹160 crore. The company board also approved the Draft Letter of Offer. The small-cap company said the terms and conditions of the rights issue will be determined and communicated later.
Regarding other details of the Kellton Tech Solutions rights issue, the small-cap company said, “The Board of Directors have also approved the Draft Letter of Offer. Further, the Board of Directors will, inter alia, decide the terms and conditions of the Rights Issue, including but not limited to the determination of the issue price, rights entitlement ratio, record date, timing of the Rights Issue and terms of payment and other related matters.”
This means the company has decided the size of the Kelltton Tech Solutions rights issue won't exceed ₹160 crore. The rest of the information, such as the rights issue record date, subscription date, entitlement ratio and eligibility, and the purpose of the issue, will be decided and communicated later.
As the tech stock had already announced the board meeting agenda for the rights issue to raise funds, shares of the small-cap stock under ₹50 witnessed strong buying interest on Friday. Kellton Tech Solutions' share price finished around 3% higher at ₹12.47 per share on the NSE on Friday. The small-cap stock finished on NSE with a market cap of around ₹660 crore and a PE ratio of around 7.3. The stock is one of the beaten-down stocks available on Dalal Street. Its 52-week high is ₹23.80, and the 52-week low is ₹11.80.
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