Kellton to raise $15 mn via QIP

Kellton has reported a net profit of Rs 22.07 cr for the financial year ended June 2015, as compared with Rs 6.36 cr in the previous year

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K Rajani Kanth Hyderabad
Last Updated : Aug 31 2015 | 7:17 PM IST
Kellton Tech Solutions Limited, a Hyderabad-based IT services and solutions company, is planning to raise $15 million (around Rs 99 crore) from the domestic markets through a qualified institutional placement (QIP) by November this year.

"While a part of the fundraising proceeds will be utilised for debt write-off, $10 million will be set aside for acquisitions in the areas of enterprise applications and I-Smac (Internet of Things, social media, analytics and cloud)," Niranjan Chintam, founder and chairman of Kellton Tech, told Business Standard.

Kellton is looking at smaller companies in Australia, Europe and the US to acquire, and is expected to close one buyout by December this year, and another by the end of next year.

Kellton had in June this year acquired US-headquartered enterprise solutions and business integration provider ProSoft Group for $14 million in an all-cash deal, which is expected to add $40 million to its top line this fiscal, according to Chintam.

"Our target is to garner annual revenues of Rs 2,000 crore in the next three years, primarily on the back of strategic acquisitions, restructuring and consolidating our business units and building strong tiers of middle and senior management across functional domains," he said.

Kellton has reported a net profit of Rs 22.07 crore for the financial year ended June 2015, as compared with Rs 6.36 crore in the previous year, reflecting a growth of 247 per cent. Its full-year revenues grew 79.14 per cent to Rs 239.64 crore, as against Rs 133.77 crore a year ago.

Kellton Tech Solutions Limited's scrip ended the trade at Rs 76.75 on the BSE on Monday, up 5.50 per cent, over the previous close of Rs 72.75 per share.

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First Published: Aug 31 2015 | 5:34 PM IST

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