Shah Metacorp Limited has informed the Exchange about Agreements
SHAH · price
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The Board of Shah Metacorp approved a Rights Issue of fully paid-up equity shares (face value Re. 1) for an aggregate amount not exceeding Rs. 50 Crore, to be offered to existing eligible shareholders on a record date yet to be announced. It also approved investing up to USD 100,000 by subscribing up to 50% of the share capital of Shah Metacorp Holdings USA INC (a newly registered Delaware entity) over FY2025-26 and FY2026-27, alongside a working capital loan of up to Rs. 100 crores to the US subsidiary. Additionally, the Board modified an existing unsecured loan agreement of up to Rs. 75 crores from promoter and director Mona Viral Shah to add a clause enabling conversion of that loan (plus outstanding interest) into equity shares under the proposed Rights Issue, subject to shareholder approval via postal ballot. A Rights Issue Committee was reconstituted, and a scrutinizer was appointed for the postal ballot process.
Shareholders may see dilution from the Rs. 50 Crore Rights Issue and from the possible conversion of the Rs. 75 Crore promoter loan into equity, which could materially increase the promoter's stake and alter control dynamics. The loan-to-equity conversion may improve the debt-to-equity ratio but the precise impact depends on the rights issue price. The small US investment is minor in value but signals overseas expansion intent.