Penny stock Shah Metacorp jumped more than 6% on Monday, 25 May, after the company announced plans to raise up to ₹49.80 crore through a rights issue to fund its expansion initiatives and strengthen its financial position.
According to the company’s filing, the rights issue will open for subscription on 11 June and close on 24 June. The issue is priced at ₹4.86 per share, offering existing shareholders an opportunity to increase their stake at a discount to the market price. The stock had closed at around ₹5.09 per share on 23 May. The last date for on-market renunciation of rights entitlements is 22 June.
The issue comprises up to 10.24 crore fully paid-up equity shares with a face value of Re 1 each, aggregating to ₹49.80 crore. Eligible shareholders will receive rights shares in the ratio of 36 equity shares for every 311 shares held as of the record date, 27 May. The company intends to deploy the proceeds toward strategic growth and expansion plans, it said in an exchange filing.
In addition, the board has greenlit a set of initiatives to bolster the company’s long-term growth strategy. Shah Metacorp has finalised the acquisition of a 26% interest in Strike Eco Grid Private Limited, thereby entering the renewable energy sector. The company has also sanctioned an investment in its newly established wholly owned subsidiary, Shah Metacorp Holdings USA INC, to facilitate the growth of its international operations.
These developments highlight Shah Metacorp’s commitment to diversification, sustainability, and the expansion of its global presence.
Viral Mukund Shah, Promoter & CEO, Shah Metacorp Ltd, said, “Through the Rights Issue and our recent strategic decisions, we are strengthening the foundation for Shah Metacorp’s next phase of growth.
While we continue to reinforce our core stainless steel business, our foray into renewable energy and expansion into the US market through our subsidiary reflect a clear focus on diversification and global presence. These initiatives are aligned with our long-term vision of building a more resilient, future-ready organisation and creating sustainable value for our shareholders.”
Shah Metacorp share price today
Shah Metacorp share price today opened at ₹5.20 per share on the BSE, the stock touched an intraday high of ₹5.41, and an intraday low of ₹5.12 per share.
Shares of Shah Metacorp have delivered a mixed performance across different time frames. The stock has declined 3.5% over the past week and 7.9% over the past two weeks, reflecting recent volatility.
Over the past month, the stock has slipped 1.3%. However, the longer-term trend remains positive, with Shah Metacorp gaining 9.2% over the past three months and rising 4.8% year to date, indicating that, despite short-term weakness, the stock has generated positive returns for investors in 2026 so far.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said that, given Shah Metacorp’s status as a penny stock, a detailed technical assessment may be unreliable. However, based on recent price action, the stock appears to be finding support near its 89-day exponential moving average (DEMA), currently placed around ₹5.
“On the upside, the recent swing high near ₹6 is likely to act as an immediate resistance level. A sustained move above this zone could improve near-term sentiment, while holding above the ₹5 support remains crucial for maintaining the current trend,” added Bhosale.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
