String Metaverse Ltd Announces 2:9 Bonus Issue

Bonus Issue Ratio: 2:9
Record Date: June 19, 2026

Reader Takeaway: Bonus issue to meet SEBI norms; promoters excluded, impacting public float.

What just happened

String Metaverse Ltd has announced a bonus issue of equity shares in a ratio of 2:9. For every nine fully paid-up equity shares held, eligible shareholders will receive two bonus equity shares. The record date for determining entitlement has been fixed as June 19, 2026, with the deemed date of allotment set for June 22, 2026.

Why this matters

This corporate action is primarily a regulatory compliance measure. String Metaverse is undertaking this bonus issue specifically to achieve and maintain the Minimum Public Shareholding (MPS) requirements mandated by the Securities and Exchange Board of India (SEBI). A key feature is that Promoter and Promoter Group shareholders are excluded from this bonus allocation.

The backstory

Companies listed on Indian stock exchanges must maintain a minimum public float as per SEBI regulations. When a company's public shareholding falls below the mandated threshold, it needs to take steps to increase it. This often involves measures like offering additional shares to public shareholders.

What changes now

For public shareholders, this means an increase in their shareholding without additional investment, as they will receive bonus shares. The exclusion of promoters from this specific bonus issuance will effectively increase the proportion of shares held by the public, helping the company meet its MPS obligations.

Risks to watch

While a bonus issue itself doesn't dilute intrinsic value, the primary purpose here is regulatory compliance, not necessarily business growth. Investors should view this as a structural adjustment rather than a sign of financial expansion or profitability boost.

Peer comparison

Many listed companies periodically undertake bonus issues or rights issues to manage their capital structure and meet regulatory requirements for public float. The specifics of exclusion of promoters are less common but are a valid method to address MPS norms.

Context metrics (time-bound)

Record Date: June 19, 2026. Deemed Date of Allotment: June 22, 2026. Bonus Ratio: 2 bonus shares for every 9 shares held.

What to track next

Investors should monitor the company's subsequent filings to ensure successful completion of the bonus issue and sustained compliance with SEBI's Minimum Public Shareholding regulations.