String Metaverse Plans 2:9 Bonus Share Issue to Boost Public Float

String Metaverse Ltd's board has approved a proposal for a 2:9 bonus share issuance, specifically for public shareholders. Promoters are waiving their rights to these new shares.

Bonus Share Proposal Greenlit

String Metaverse Ltd announced on April 29, 2026, that its board has approved a 2:9 bonus share issuance. Eligible public shareholders will receive two new shares for every nine they own. The company confirmed that promoters and the promoter group will voluntarily waive their entitlement to these bonus shares. This action is designed to help the company meet Minimum Public Shareholding (MPS) requirements, targeting a public float of 25%.

Why This Boosts Shareholder Value and Compliance

Meeting Minimum Public Shareholding (MPS) norms is required for listed companies. It ensures enough shares are available for public trading and helps prevent market manipulation. A bonus issue, particularly with promoters waiving their rights, can boost the public's share proportion without weakening promoter voting control. This strategy also aims to include public investors more fully and reward them, which could increase confidence and stock liquidity.

Company Context

String Metaverse Ltd focuses on the metaverse and NFT sector, developing virtual reality experiences and blockchain games. For a growing company, managing its shareholding structure is key for ongoing compliance and investor confidence. Promoters waiving bonus entitlements is a known strategy to meet SEBI's MPS rules, which set minimum public shareholding percentages. The company has not faced significant regulatory actions or governance issues, indicating this is a proactive step.

Impact on Shareholders and Float

Public shareholders will increase their holdings without needing to invest more money. The promoters' relative ownership stake will decrease, while the public's shareholding percentage rises. The company moves closer to its 25% MPS target. This could lead to greater trading activity and liquidity for the company's stock.

Potential Hurdles Ahead

The bonus issue plan requires final approval from shareholders, stock exchanges, and relevant regulatory bodies. Any changes mandated by laws or regulators could affect the final outcome. The company must also maintain compliance with MPS norms after the shares are issued.

Industry Context

Finding direct Indian public company peers for String Metaverse, given its specialized focus on metaverse platforms and NFTs, is difficult due to the niche market. Companies in broader IT services, gaming, or blockchain technology might offer indirect comparisons, but their core businesses and market positions often differ significantly. This makes direct comparison for this specific bonus issue less relevant.

Key Metrics

The company aims for 25% public shareholding, a standard regulatory requirement. Promoter shareholding is expected to decrease proportionally relative to the increased public float after the bonus issue and waiver.

Next Steps for Investors

Investors should watch for the announcement of the record date to determine who is eligible for the bonus issue. Further details on the bonus share mechanics and confirmation of approvals from shareholders and regulators are key. The company's timeline for completing the issuance and any further updates on its MPS compliance status will be important to monitor.