Shah Metacorp Clears Rs 50-Crore Rights Issue and US Investment Plan

The latest update is out from Shah Metacorp Ltd ( (IN:SHAH) ).

Shah Metacorp Limited’s board has approved a rights issue of fully paid equity shares with a face value of Re 1 each to raise up to Rs 50 crore from existing shareholders, with key terms such as issue price, entitlement ratio and record date to be finalized and announced later. The board also reconstituted its Rights Issue Committee, cleared the appointment of intermediaries for the issue, and approved modifications to an existing loan agreement with Director and promoter Mona Viral Shah to allow conversion of her loan into equity under the proposed rights issue, classifying it as a related-party transaction. In addition, the board sanctioned an investment of up to USD 100,000 for up to 50% shareholding in Shah Metacorp Holdings USA Inc., along with approval for related-party transactions including potential working capital loans of up to Rs 100 crore to the US entity, and initiated the postal ballot process by appointing a scrutinizer and approving the draft notice for shareholder approval. These moves collectively indicate a capital restructuring and international expansion strategy aimed at strengthening the company’s balance sheet, aligning promoter funding with equity, and supporting overseas growth through its US holding company.

More about Shah Metacorp Ltd

Shah Metacorp Limited, formerly known as Gyscoal Alloys Limited, operates in the metals sector and is listed on both BSE and NSE under the symbol SHAH. The company is involved in metal and alloy products and is expanding its presence through domestic capital-raising initiatives and international investments, including a holding entity in the United States.

Average Trading Volume: 424,719

Technical Sentiment Signal: Strong Buy

Current Market Cap: 3.1B INR

Learn more about SHAH stock on TipRanks’ Stock Analysis page.