Shah Metacorp Limited has informed the Exchange about related Party Transactions
SHAH · price
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Shah Metacorp Limited's board, in a meeting held on December 29, 2025, approved multiple key matters. First, a Rights Issue of up to Rs. 50 Crore through fully paid-up equity shares (face value Re. 1) to existing eligible shareholders, with further terms to be decided later. Second, an investment of up to USD 100,000 (about Rs. 83 lakhs) to subscribe up to 50% of the share capital of Shah Metacorp Holdings USA INC (a newly registered Delaware company) over FY2025-26 and FY2026-27. Third, modification of an existing Rs. 75 Crore unsecured loan agreement with Director and Promoter Mona Viral Shah (currently holding 12.04% stake) to add a clause allowing conversion of the loan into equity shares under the proposed Rights Issue. The board also approved related party transactions, a working capital loan of up to Rs. 100 Crores, appointment of intermediaries, and a postal ballot to seek shareholder approval.
The Rights Issue will dilute existing shareholders, while the loan-to-equity conversion option for the promoter could significantly alter the shareholding pattern and potentially affect control. The stock may see short-term pressure due to dilution and related-party transaction overhang, though the debt-to-equity ratio could improve if the loan is converted.