Shah Metacorp Limited has informed the Exchange regarding 'Clarification - pursuant to corrigendum and Reply to NSE dated May 06, 2025 towards NSE Observation dated May 21, 2025'.
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Awaiting price reaction for this filing.
Shah Metacorp has replied to NSE's observations on its application seeking in-principle approval for a large preferential allotment of 18,93,32,229 equity shares, 6,65,00,000 equity shares, and 4,40,00,000 convertible equity warrants. The company clarified that the preferential issue will result in allotment of more than 5% of the post-issue fully diluted share capital (approximately 24% to public category allottees under Item 2 of the EGM notice held on March 5, 2025). On a fully diluted basis, total shares will expand from about 59.39 crore to 89.37 crore — a ~50% increase. The shareholding pattern shows promoter holding dipping slightly from 30.87% to 29.82%, while public holding rises from 69.13% to 70.18%. One of the stated objects of the issue is repayment of borrowings, including two unsecured loans at 12% p.a. — ₹16.18 crore from Chairperson Mona Shah and ₹32.10 lakh from Sampati Securities Limited.
This is a significant dilution event for existing shareholders, with the share count rising roughly 50% on a fully diluted basis. Large incoming allottees will substantially reshape the shareholding structure, which could pressure the stock price post-allotment. The use of proceeds to repay related-party loans at 12% interest is a notable point for shareholders to monitor.