String Metaverse Plans Bonus Shares to Boost Public Ownership

String Metaverse Ltd. is set to hold a board meeting on April 29, 2026, to consider issuing bonus equity shares. The company aims to increase its public shareholding from the current approximately 21.48% to the mandated 25% Minimum Public Shareholding (MPS) level. This strategic move follows a recent, successful Offer for Sale (OFS).

OFS Success and Investor Demand
The recent OFS saw strong investor participation, with non-retail investors subscribing 149% and retail investors showing significant interest by subscribing 495%. This robust demand provides a positive backdrop for the company's next step towards regulatory compliance.

Meeting SEBI's Public Shareholding Rules
Regulators like the Securities and Exchange Board of India (SEBI) require listed companies to maintain a minimum public float of 25%. This rule is designed to ensure a diverse ownership base and prevent concentration with promoters. String Metaverse's current public stake of ~21.48% necessitates action to meet this requirement.

Potential Benefits for Shareholders and Company
Shareholders could benefit from receiving additional equity shares at no cost, subject to the terms of the bonus issue. Achieving the 25% MPS target will bring String Metaverse into compliance, avoiding potential penalties or delisting risks. Increased public float can also contribute to enhanced stock liquidity over time.

Risks to Monitor
The proposed bonus share issuance is subject to approval from the company's board and relevant regulatory bodies. There is a possibility that the proposal might not receive the necessary clearances. Additionally, promoters have the option to renounce their entitlement to bonus shares, which could affect the final public shareholding percentage.

Industry Context
While direct metaverse technology peers are few in the Indian listed market, companies like Autosense Technologies Ltd operate in related tech sectors, and larger IT firms such as Tech Mahindra Ltd also have interests in areas like the metaverse, providing broader industry context.

What to Watch Next
Investors will be closely watching the outcome of the April 29, 2026, board meeting. Key details to track include the specific terms and ratio of the bonus issue, the timeline for obtaining regulatory approvals, and confirmation of the final public shareholding percentage post-issuance.