Shah Metacorp Limited Announces Rights Issue of Rs. 49.8 Crore Amid Global Expansion Plans
Shah Metacorp Limited, a manufacturer and exporter of stainless steel and mild steel long products, announced plans to raise up to Rs. 49.80 crore through a Rights Issue. The capital-raising initiative aims to fund the company's expansion plans and strengthen its financial position.The Rights Issue is structured at a price of Rs. 4.86 per share and comprises up to 10,24,68,139 fully paid-up Equity Shares of face value Rs. 1 each, aggregating to Rs. 49.80 crore.
The key details of the capital raise are as follows:
| Detail | Specification |
|---|---|
| Issue Price | Rs. 4.86 per share |
| Total Shares Offered | Up to 10,24,68,139 Equity Shares |
| Total Corpus | Rs. 49.80 crore |
| Rights Issue Open Date | June 11, 2026 |
| Rights Issue Close Date | June 24, 2026 |
| Onmarket Renunciation Deadline | June 22, 2026 |
| Entitlement Ratio | 36 rights shares for every 311 equity share |
Shares of the company were trading at around Rs. 5.09 on May 23, 2026, compared to the issue price of Rs. 4.86 per share. The company proposed to utilize the proceeds for strategic growth and expansion initiatives.
Strategic Focus and Global Reach
Beyond the Rights Issue, the board has approved several strategic moves designed to enhance Shah Metacorp's long-term growth roadmap.The company has significantly strengthened its presence in the renewable energy sector with the acquisition of a 26% stake in Strike Eco Grid Private Limited. Furthermore, the board approved investment in Shah Metacorp Holdings USA INC, its newly incorporated wholly-owned US subsidiary, marking a clear step towards expanding the company's international business operations.
Viral Mukund Shah, Promoter & CEO, stated that these strategic decisions are reinforcing the foundation for the next phase of growth. He noted that while the company continues to strengthen its core stainless steel business, the foray into renewable energy and the US market reflects a focused effort on diversification and global presence.
Financial Performance and Outlook
In terms of operational performance, Shah Metacorp reported strong momentum in the quarter ended Q3 FY26, announcing revenue of around Rs. 149 crore and a Profit After Tax (PAT) of approximately Rs. 4 crore. The company is expected to announce its Q4 FY26 financial results later this month.Shah Metacorp Limited is fundamentally engaged in the manufacturing and export of stainless steel and mild steel long products. The company has been incorporating improvements in its manufacturing capabilities and product portfolio to build a diversified long-term platform. The association with Strike Eco Grid Private Limited is expected to support the company's expansion into sustainable infrastructure and clean energy sectors in the coming years.
Incorporated in 1999 and headquartered in Ahmedabad, Gujarat, Shah Metacorp Limited is listed on both BSE Limited and the National Stock Exchange of India Limited, catering to domestic and international markets across multiple industries.
SHAH Stock Price Movement
Shares of Shah Metacorp Limited are edging higher to ₹5.19 as of 11:49 AM, rallying significantly by 2.57% in live trading. The equity is building momentum, trading on robust volume of 1.96 million shares as it gains ₹0.13 today.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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