Shah Metacorp Limited — Important, 29-12-2025: Disclosure of material issue

Shah Metacorp's board has approved key strategic moves.

**Issue & Company's Response:**

The company is addressing its capital needs and pursuing international expansion. They have announced a Rights Issue to raise up to **Rs. 50 Cr** by issuing new equity shares to existing shareholders. This is a primary method to infuse funds for growth.

Additionally, Shah Metacorp plans to invest up to **USD 100,000** in Shah Metacorp Holdings USA INC, a new subsidiary focused on general trading, hospitality, tech, and stainless steel products, marking a strategic international diversification. They also approved a working capital loan up to **Rs. 100 Cr** for this US entity.

A significant modification was approved for an existing loan of up to **Rs. 75 Cr** from Director and Promoter Ms. Mona Viral Shah. The modified agreement now allows this loan, along with outstanding interest, to be converted into equity shares during the proposed Rights Issue, subject to shareholder approval via postal ballot.

**Possible Impact:**

* **Capital Infusion:** The Rights Issue will bring in fresh capital for company operations and growth initiatives. The potential conversion of the promoter's loan further strengthens the balance sheet by reducing debt and improving the debt-to-equity ratio.

* **International Expansion:** The investment in the US subsidiary opens avenues for diversified business and potential new revenue streams in international markets.

* **Shareholder Dilution & Control:** Existing shareholders will face equity dilution from the Rights Issue. If the promoter's loan converts to equity, there could be a further change in shareholding patterns, impacting voting rights and potentially the company's control structure. This conversion requires shareholder approval.

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