Shah Metacorp approves Rs 47.2 crore rights issue of 97.2 million shares

What Shah Metacorp announced

On 30 June 2026, Shah Metacorp Ltd (the "Company") informed the market that its Rights Issue Committee, after consulting with MUFG Intime India Private Limited (formerly Link Intime India Private Limited), approved a rights issue of 9,71,63,362 (97,163,362) Rights Equity Shares. Each share carries a face value of Rs 1 and will be allotted at an Issue Price of Rs 4.86, which includes a premium of Rs 3.86 over the face value. The approval was recorded in the minutes of the board meeting and filed with BSE on the same day.

Rights Issue terms

• Number of shares: 97,163,362 Rights Equity Shares
• Face value: Rs 1 per share
• Issue price: Rs 4.86 per share (premium Rs 3.86)
• Total amount to be raised: Approximately Rs 47.2 crore (97,163,362 × Rs 4.86)
• Registrar: MUFG Intime India Private Limited, appointed to manage the allotment, record‑keeping and related communications.
• Regulatory basis: The issue is being undertaken under Regulation 30 of the SEBI (LOI) Regulations, 2015, as amended, and has been approved by BSE, the designated stock exchange.

The filing does not disclose the entitlement ratio (i.e., how many rights each existing shareholder will receive) nor the timeline for the subscription period. Those details are expected to be outlined in the Letter of Offer that will be circulated to shareholders.

Regulatory and procedural details

The rights issue is being executed in strict compliance with the Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, specifically Regulation 30, which governs the intimation of outcomes of rights issue committee meetings. The Board’s resolution was communicated to BSE, which subsequently gave its approval as the designated exchange. MUFG Intime India Private Limited, acting as the registrar, will handle the entire subscription process, including verification of eligibility, allotment calculations, and issuance of share certificates.

The filing references a Letter of Offer, which is the formal document that will contain the detailed terms, subscription dates, and procedural steps for shareholders. The Board’s approval is a prerequisite for the next steps, which typically include a shareholder meeting to obtain the necessary approvals, followed by the actual allotment and credit of shares to the investors’ demat accounts.

Key facts at a glance

Why this matters for investors

The rights issue represents a capital‑raising exercise that will increase the Company’s equity base. Existing shareholders will have the opportunity to subscribe to the new shares in proportion to their current holdings, thereby preserving their ownership percentage if they choose to participate. The premium of Rs 3.86 indicates that the Company is pricing the new shares above the current face value, which may reflect its assessment of valuation or the need to raise a specific amount of capital.

For shareholders who do not subscribe, the issuance will lead to dilution of their percentage ownership, as the total number of outstanding shares will rise. Conversely, shareholders who exercise their rights can maintain their stake and potentially benefit from any future upside that the additional capital may generate, such as funding of growth projects, debt reduction, or working‑capital needs.

The involvement of a reputable registrar, MUFG Intime India Private Limited, adds procedural certainty, ensuring that the subscription, allotment, and settlement processes adhere to regulatory standards.

Conclusion

Shah Metacorp Ltd’s board has formally approved a rights issue of 97.2 million shares at Rs 4.86 each, targeting roughly Rs 47.2 crore of fresh capital. The approval complies with SEBI’s Regulation 30 and has been cleared by BSE. The next steps will involve the issuance of the Letter of Offer, shareholder approval, and the eventual allotment of shares through MUFG Intime India Private Limited. Investors should monitor forthcoming communications for the exact subscription timeline and entitlement ratio.