String Metaverse Promoter Sells Stake to Boost Public Float for Shareholding Rules

String Metaverse Ltd's promoter group has sold 38.10 lakh equity shares, a move designed to increase public ownership and bring the company closer to regulatory shareholding targets. This transaction represents 3.27% of the company's paid-up capital and raises the public shareholding to 21.48%, a key step towards meeting the 25% Minimum Public Shareholding (MPS) requirement set by regulators.

Details of the Share Sale

The promoter group, which includes Spacenet Enterprises India Ltd., Y. Venkata Subba Rao, Lanka Divyabharathi, and Pendurthi Annapurna, completed the sale of 38.10 lakh equity shares via an Offer for Sale (OFS). The OFS took place between April 21-22, 2026. This divestment reduced the promoter group's overall stake from 81.79% to 78.52%.

Why Meeting Shareholding Rules Matters

This share sale is critical for String Metaverse as it moves the company nearer to the Securities and Exchange Board of India's (SEBI) mandated Minimum Public Shareholding (MPS) level of 25%. Adhering to these norms is essential for maintaining regulatory compliance, avoiding potential penalties, and ensuring the company's continued listing on the stock exchange.

Company Background and Shareholding Rules

String Metaverse Ltd. was formerly known as Bio Green Papers Limited. It transitioned from paper manufacturing to a technology-focused business specializing in Web 3.0, gaming, blockchain, and fintech after a merger approved by the National Company Law Tribunal (NCLT) in May 2024. The company formally changed its name in April 2025. SEBI rules require listed companies to maintain at least 25% public shareholding. For companies where promoters hold more than 75% of the shares, divestment is necessary to meet this threshold.

Immediate Impacts of the Sale

The sale has several immediate consequences:

• The promoter group's total ownership and control in String Metaverse have decreased.
• The public float has expanded, which could lead to better stock liquidity.
• The company has made concrete progress toward achieving the required 25% MPS target.

Key Risks for String Metaverse

Investors should be aware of potential challenges:

• Regulatory Compliance: String Metaverse must continue taking steps to reach and sustain the 25% MPS target within SEBI's deadlines to prevent penalties.
• Past Violations: The company previously paid a penalty to SEBI due to insider trading violations involving a promoter group member and an independent director.

Market Context: Metaverse and Web 3.0 Players

String Metaverse operates in a dynamic sector. Major IT companies like TCS and Infosys, alongside gaming firm Nazara Technologies, are also active in the metaverse and Web 3.0 space. These firms are developing platforms and investing in related technologies, reflecting a broader trend of Indian companies expanding into digital infrastructure and immersive technologies.

Key Holding Figures

• Promoter Holding (Post-OFS): 78.52% as of April 2026.
• Public Holding (Post-OFS): 21.48% as of April 2026.
• Stake Divested via OFS: 3.27% during April 21-22, 2026.

Looking Ahead: What Investors Should Monitor

Investors will want to track:

• Further actions String Metaverse takes to reach the 25% MPS mark.
• The pricing and subscription interest levels for the OFS.
• The company's financial performance and strategic execution in its Web 3.0, gaming, and fintech businesses.
• Any new regulatory announcements regarding compliance.