String Metaverse Promoter Offloads 3.27% Stake via OFS at ₹66 Floor Price

String Metaverse's promoter group is set to sell up to 3.27% of the company's equity, amounting to approximately 38.10 lakh shares, at a floor price of ₹66 per share through an Offer for Sale (OFS).

OFS Details and Timeline

The Offer for Sale is designed to divest up to 3.27% of String Metaverse's total paid-up capital. This transaction involves roughly 38.10 lakh equity shares, with a set floor price of ₹66 per share. Bidding will take place from April 21, 2026, for non-retail investors and April 22, 2026, for retail investors, both sessions running from 9:15 AM to 3:30 PM IST.

Strategic Importance for Compliance

The primary driver for this OFS is to increase the company's public float, ensuring compliance with Securities and Exchange Board of India (SEBI) minimum public shareholding regulations. Meeting these norms is vital for maintaining regulatory adherence and preventing potential penalties or delisting, thereby safeguarding String Metaverse's market standing. The sale also signals a planned reduction in the promoter group's overall stake.

Company Background and Evolution

String Metaverse Ltd. has undergone a significant transformation. Formerly known as Bio Green Papers Limited, the company has pivoted from paper manufacturing to a tech-focused entity involved in Web 3.0, gaming, blockchain, and fintech. This strategic shift was formalized following a merger approved by the National Company Law Tribunal (NCLT) on May 28, 2024. Previously, in September 2025, the company sold its entire stake in subsidiary String AI IFSC for ₹1.84 crore.

Recent Governance Scrutiny

In recent times, String Metaverse has faced scrutiny regarding insider trading. In late 2025, the company reported contra-trade violations involving a promoter group member and an independent director, which resulted in a penalty of ₹11,207 paid to SEBI.

Expected Changes Post-OFS

Following the Offer for Sale, String Metaverse is expected to see an increased public float, potentially enhancing market liquidity. The promoter group's consolidated shareholding will be reduced. The company will also move closer to fulfilling SEBI's minimum public shareholding requirements. For investors, the OFS offers a direct opportunity to acquire shares from the promoter group, and the final discovered price could influence the stock's future valuation.

Potential Risks

One key risk is insufficient demand for the shares at or above the floor price. The seller retains the right to withdraw the offer in such a scenario, which could affect market sentiment. Additionally, the recent disclosures of insider trading violations by a promoter group member and an independent director may raise governance concerns among investors.

Industry Context

String Metaverse operates within the technology and software services sector. Its business areas in Web 3.0, gaming, and fintech place it alongside companies such as Nazara Technologies Ltd., known for its gaming focus. Broader comparisons can be made with large IT firms like Tata Consultancy Services Ltd., Wipro Ltd., and HCL Technologies Ltd., although direct parallels for public shareholding percentages are not readily available.

Key Compliance and Valuation Details

The Offer for Sale is directly aimed at meeting SEBI's minimum public shareholding norms, which typically require a minimum of 25% public float for main board listed companies. The floor price of ₹66 per share was determined by the sellers, reflecting their valuation of the stake being offered.

What Investors Will Monitor

Investors will likely focus on the final price determined during the OFS bidding period (April 21-22, 2026). They will also observe the market's reaction to the increased public float and any shifts in the promoter stake. Further scrutiny will be applied to any additional regulatory updates or compliance actions concerning the recent insider trading disclosures. The company's progress in its core Web 3.0, gaming, and fintech segments following the OFS will also be a key area of interest.