String Metaverse Plans Bonus Shares to Meet Public Holding Rules

String Metaverse Ltd's Board has approved issuing bonus shares equivalent to ₹5.56 crore. This move aims to boost Minimum Public Shareholding (MPS) compliance, with promoters waiving their entitlement to receive these shares.

What Happened Today

In a meeting on April 29, 2026, String Metaverse Limited's Board of Directors approved issuing bonus equity shares. The company will offer two bonus shares for every nine existing equity shares held by public shareholders. Promoters have chosen not to take their allotment of these bonus shares. The company also officially withdrew its earlier application for a Rights Issue, shifting its strategy to focus on the bonus issue for compliance.

Why This Matters

Minimum Public Shareholding (MPS) requires listed companies in India to maintain at least 25% public float. Failing to meet MPS norms can lead to delisting. The bonus issue increases the number of shares held by public shareholders without requiring new investment, directly helping raise the public float percentage. Withdrawing the rights issue suggests the company is avoiding potential equity dilution and market fundraising for now, focusing solely on the compliance-driven bonus share plan.

How Holdings Change

Public shareholders will see their holdings increase by approximately 22.22% (2 bonus shares for every 9 held). Promoters will not receive any shares from this bonus issuance. The company's paid-up share capital is set to increase from ₹116.43 crore to ₹121.99 crore using free reserves and share premium. String Metaverse is now prioritizing the bonus share route for meeting its MPS obligations.

Potential Risks

The bonus share issuance depends on receiving necessary regulatory and statutory approvals. Delays or non-receipt of these approvals could affect the timeline or feasibility of the bonus share credit.

Key Financial Details

• As of December 31, 2025, String Metaverse Ltd held free reserves of ₹1.93 crore.
• Share premium stood at ₹42.28 crore as of December 31, 2025.
• The company's pre-bonus paid-up share capital was ₹116.43 crore as of December 31, 2025.
• The proposed bonus issue will capitalize ₹5.56 crore from reserves and premium.

What to Track Next

Investors will watch for the record date announcement, which determines eligibility for bonus shares. The company's success in securing all required regulatory approvals within a reasonable timeframe will be a key factor to watch. Confirmation of the estimated bonus share credit timeline after approvals is also important.