String Metaverse Ltd Bonus Issue to Boost Public Shareholding

Bonus Ratio: 2:9 (Exclusive to public shareholders)
Record Date: June 19, 2026

String Metaverse Ltd has announced a significant corporate action, issuing 2 bonus equity shares for every 9 shares held, exclusively for its public shareholders. The promoter and promoter group have voluntarily waived their right to this bonus issue. This move is aimed at ensuring compliance with the 25% Minimum Public Shareholding (MPS) requirement set by regulatory authorities.

What just happened

The company approved a bonus issue of 2 equity shares for every 9 held. This issuance is restricted solely to public shareholders, while the promoters have opted out by waiving their entitlement. The decision was ratified via e-voting on June 4, 2026.

Why this matters

This bonus issue is a strategic step for String Metaverse Ltd to increase its public float and meet the mandatory 25% MPS norm. By not taking the bonus shares, promoters effectively reduce their overall stake percentage, thus increasing the public shareholding proportion without any capital infusion.

The backstory

Companies are required by SEBI to maintain a minimum public shareholding. Failure to do so can lead to penalties or compulsory delisting. String Metaverse Ltd is proactively undertaking this bonus issuance to preemptively address and fulfill this regulatory mandate.

What changes now

Following the bonus issue, the total number of outstanding shares will increase. Public shareholders will hold more shares relative to their previous holdings, and the promoter group's percentage ownership will decrease, bringing the company closer to the 25% MPS threshold. The record date for determining eligible public shareholders is June 19, 2026.

Risks to watch

Investors should monitor future compliance filings to ensure the company successfully achieves and maintains the 25% MPS target. Any delays or further non-compliance could attract regulatory scrutiny.

Peer comparison

While bonus issues are common, restricting them to public shareholders while promoters waive their rights is a less frequent strategy, typically employed under specific regulatory pressures.

Context metrics (time-bound)

The e-voting for the special resolution concluded on June 4, 2026. The record date for the bonus issue is set for June 19, 2026.

What to track next

Investors should watch for subsequent regulatory filings confirming the updated public shareholding percentages and adherence to the MPS norms.