Announced Wed, 29 Apr · 18:55 IST

Out come of Board Meeting

Board & Shareholder Meetings View source PDF

Price

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Price reaction · full curve 14 horizons · vs prior close
+3.9%1-day move
₹10.05
prior close
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After-mkt
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+3.9-9.5-25.5
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AI summary

String Metaverse Limited announced that its Board of Directors approved a bonus equity issue exclusively for public shareholders in a 2:9 ratio (2 bonus shares for every 9 shares held). The bonus will be funded by capitalizing free reserves and securities premium account totaling ₹5.55 crore. The pre-bonus paid-up capital is ₹116.43 crore and post-bonus will be ₹121.99 crore. The company withdrew its previously planned Rights Issue for achieving Minimum Public Shareholding (MPS) compliance, as the bonus route is considered more certain. Promoter and promoter group shareholders have voluntarily foregone their entitlement to the bonus shares. A postal ballot will be conducted for shareholder approval.

Likely market impact

This bonus issue is primarily a regulatory compliance measure to meet MPS requirements rather than a reward for shareholders. While existing public shareholders will receive additional shares at no cost, the stock may experience price adjustment. The withdrawal of the Rights Issue removes potential dilution pressure.