Penny Stock Shah Metacorp Surges on Announcement of ₹49.8 Crore Rights Issue

Shah Metacorp Sees 6% Jump After Announcing Rights Issue Plans

Penny stock Shah Metacorp experienced a significant surge of more than 6% on Monday, May 25, following the company's announcement to raise up to ₹49.80 crore through a rights issue. The move aims to fund the company's expansion initiatives and strengthen its financial position. According to the company's filing, the rights issue will open for subscription on June 11 and close on June 24. The issue is priced at ₹4.86 per share, offering existing shareholders an opportunity to increase their stake at a discount to the market price.

The stock had closed at around ₹5.09 per share on May 23. The last date for on-market renunciation of rights entitlements is June 22. The issue comprises up to 10.24 crore fully paid-up equity shares with a face value of Re 1 each, aggregating to ₹49.80 crore. Eligible shareholders will receive rights shares in the ratio of 36 equity shares for every 311 shares held as of the record date, May 27.

The company intends to deploy the proceeds toward strategic growth and expansion plans. Shah Metacorp has also finalized the acquisition of a 26% interest in Strike Eco Grid Private Limited, entering the renewable energy sector. Additionally, the company has sanctioned an investment in its newly established wholly owned subsidiary, Shah Metacorp Holdings USA INC, to facilitate the growth of its international operations.

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The developments highlight Shah Metacorp's commitment to diversification, sustainability, and the expansion of its global presence. The company's focus on building a more resilient, future-ready organization and creating sustainable value for its shareholders is reflected in its strategic decisions.