10 Shares Will Become 50 in This Small-Cap IT Stock, Check the Record Date of This Stock Split

By Finance Very

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If you own shares of Kellton Tech Solutions, this news is for you. The company has announced a stock split in a 1:5 ratio. This means if you currently hold 1 share with a face value of ₹5, it will be split into 5 shares, each with a face value of ₹1. All shareholders holding shares on the record date will be eligible to receive the split shares.

Small Cap IT Stock 1 5 Stock Split Announced

What Is a Stock Split?

A stock split means the company divides its existing shares into smaller units. While the share price decreases, the total value of your holding remains the same. Here’s an example to understand it better:

Before Split: 1 Share = ₹140 (Face Value ₹5)
After Split (1:5): 5 Shares = ₹28 each (Face Value ₹1)

So, if you previously owned 1 share worth ₹140, after the split, you’ll have 5 shares worth ₹28 each — your total investment value remains unchanged.

Why Do Companies Announce a Stock Split?

  • To Increase Liquidity: Smaller share prices make it easier for retail investors to buy.
  • Psychological Impact: Lower prices attract new investors.
  • To Boost Market Activity: Higher trading volumes can improve stock demand and visibility.

Kellton Tech’s Strong Performance

Multibagger Returns: In March 2023, the stock traded at ₹40.55, and now it’s around ₹140.30, delivering nearly 200% returns.
All-Time High: It touched an all-time high of ₹141.95 in August 2024 and is now trading close to those levels again.

New Clients and Projects

  • Bagged a $2.5 million AI and IoT project from Oil India Limited.
  • Added 9 new global clients in the March quarter, strengthening its international presence.

Will the Stock Rise After the Split?

Historically, many stocks gain momentum after a stock split, as lower prices attract more retail participation. However, post-split performance depends on the company’s fundamentals and market conditions.

Considering Kellton Tech’s growth, focus on digital transformation, and AI-driven projects, the company appears to have strong long-term potential.

What Should Investors Do?

If you already own shares, your total holding will increase after the split, though your overall value will remain unchanged. For new investors, this could be a good entry opportunity as the lower share price post-split may make the stock more accessible.

As always, conduct your own research and consult a financial advisor before making any investment decisions.

Kellton Tech Solutions continues to be a promising small-cap IT stock with strong growth drivers in digital and AI — and this stock split could further boost investor participation and liquidity.

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