Shah Metacorp Launches Rights Issue: Offering Up to 10.24 Crore Shares at ₹4.86 per Share

Shah Metacorp Launches Rights Issue: Offering Up to 10.24 Crore Shares at ₹4.86 per Share​

Shah Metacorp Ltd has announced the launch of a rights issue, offering up to 102,468,139 fully paid-up equity shares at an issue price of ₹4.86/- per Rights Equity Share. This issuance is set to raise up to ₹4,980.00 Lakhs and is open to eligible equity shareholders in the ratio of 36 Rights Equity Shares for every 311 fully paid-up Equity Shares held on the record date, which was Wednesday, May 27, 2026.

The Issue Opening Date is set for Thursday, June 11, 2026, with an Issue Closing Date of Wednesday, June 24, 2026. The allotment and credit of Rights Equity Shares are anticipated around Monday, June 29, 2026, followed by listing on or about Tuesday, June 30, 2026.

Key Details of the Rights Issue​

The financial structure and terms of the rights issue are as follows:


*The Issue Size is subject to full subscription and finalization of the Basis of Allotment.

Strategic Use of Funds​

Shah Metacorp Ltd intends to utilize the Net Proceeds from this Issue towards several strategic objectives:


The funds deployment is scheduled for Fiscal Year 2026-27. The company confirms that no other financial arrangements are required to meet the funding needs for these objects.

Business Overview and Corporate Milestones​

Shah Metacorp Ltd was established as Shreenath Mineral Metal Private Limited on September 29, 1999, and has evolved through several corporate changes before becoming Shah Metacorp Limited in June 2023. The company is a manufacturer of stainless steel long products such as angles, bright round bars, mild steel round bars, flats, and sections, alongside job work services for third-party manufacturers.

The company operates manufacturing plants in Kukarwada with a combined average plant capacity of 1,20,000 MT per annum for various grades of stainless steel products (200 series to 400 series). The company has attained ISO 9001:2015 certification from TUV SUD South Asia Private Limited.

The corporate structure includes subsidiaries such as Shah Agrocorp Private Limited and Western Urja Private Limited, among others.

Financial Highlights and Valuation​

The proposed Issue Price of ₹4.86/- per Rights Equity Share was determined based on the company's financial health and growth trajectory. The price offers a discount against the theoretical ex-rights price calculated at ₹5.09 per Equity Share under SEBI (SAST) Regulations, 2011.

Key performance indicators from audited and unaudited financials include:

Corporate Governance and Risk Factors​

The company maintains a Board of Directors composed of both executive, non-executive, and independent directors. The CEO is Viral Mukundbhai Shah, and the CFO is Narendra Kumar Sharma, with Ms. Hiral Patel serving as Company Secretary and Compliance Officer.

Among the self-declared risk factors are:

• Industry Volatility: The steel industry is highly fragmented and sensitive to fluctuating domestic and international steel prices.
• Operational Concentration: Manufacturing is concentrated in a single facility in Kukarwada, Mehsana, Gujarat.
• Financial Flows: The company has historically experienced negative net cash flows from operating activities.
• Legal Matters: As of the date of the Letter of Offer, the company is involved in several legal proceedings concerning criminal cases and tax disputes.

Issue Timeline Summary​

SHAH Stock Price Movement​

Today, shares of Shah Metacorp Limited edged higher after the close, settling at ₹4.75, which reflected a solid 2.15% gain during post-market trading. The equity finished the day with a traded volume of 16.85 million shares.