Shah Metacorp Limited has informed the Exchange about related Party Transactions
SHAH · price
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Shah Metacorp Limited's board, at its December 29, 2025 meeting, approved a Rights Issue of fully paid-up equity shares (face value Re. 1) for an amount not exceeding Rs. 50 Crore to existing eligible shareholders, with the issue price and record date to be decided later. The board also modified an existing unsecured loan agreement with promoter and director Mona Viral Shah (holding 12.04% stake) to add a clause allowing conversion of her loan (up to Rs. 75 Crore) into equity shares under the proposed Rights Issue, subject to shareholder and regulatory approvals. Additionally, the company approved investing up to USD 100,000 in its US subsidiary Shah Metacorp Holdings USA INC (acquiring up to 50% stake) and a related party working capital loan of up to Rs. 100 Crore. A Rights Issue Committee was reconstituted and a postal ballot process was initiated to seek shareholder approval.
Shareholders may see equity dilution if the promoter's loan gets converted into shares via the Rights Issue, but the company's debt burden could also reduce, improving its debt-to-equity ratio. The small US investment signals early-stage international expansion, though the Rs. 100 Crore working capital loan to a related US entity is significant and warrants attention.