Shah Metacorp Ltd., (SML) erstwhile known as Gyscoal Alloys Ltd., is engaged in the business of trading of iron and steel products. Its group has vested interest in the similar business through its other group companies/subsidiaries. It is bearing high risk of conflict of interest within the group. One of the group company Western Urja Pvt. Ltd. is engaged in the business of power, electricity and energy. Thus, the group has varied activities. The offer document is silent on its employeesā strength data.
The company is coming out with its 2nd Rights Issue (RI) of 102468139 equity shares of Re. 1 each at a fixed price of Rs. 4.86 per share to mobilize Rs. 49.80 cr. The RI opens for subscription on June 11, 2026, and will close on June 24, 2026. The company is offering RI in the ratio of 36 for 311 to its eligible stakeholders as of the record date of May 27, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 0.27 cr. for this RI process, from the net proceeds, it will utilize Rs. 16.17 cr. for working capital, Rs. 15.37 cr. for adjustment of unsecured loan from promoters to convert in equity capital, Rs. 2.88 cr. for equity investment in Shah Metacorp Holdings USA INC for internal expansion, Rs. 3.38 cr. for inter-corporate loans to its subsidiaries, and Rs. 11.73 cr. for general corporate purposes.
The RI is solely lead managed by the company itself., and MUFG Intime India Pvt. Ltd. is the registrar to the issue.
Post-RI, companyās current paid-up equity capital of Rs. 88.52 cr. will stand enhanced to Rs. 98.77 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 480.01 cr.
On the financial performance front, for the last three fiscals, the company has (on a consolidated basis) posted total income / net profit, of Rs. 101.12 cr. / Rs. 4.26 cr. (FY24), Rs. 179.18 cr. / Rs 32.60 cr. (FY25), Rs. 228.01 cr. / Rs. 12.14 cr. (FY26). Boosted profits for FY25 is attributed to adjustments for exception items.
| ā¹ in Crores | |||
| Year | Revenue | Expense | PAT |
| 2023 | ā¹46.88 | ā¹47.17 | ā¹1.65 |
| 2024 | ā¹96.22 | ā¹91.88 | ā¹4.21 |
| 2025 | ā¹173.81 | ā¹163.59 | ā¹32.36 |
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
The scrip last closed on cum-right basis at Rs. 5.20 on May 26, 2026, and opened on an ex-right basis at Rs. 5.40 on May 27, 2026. Since then, it has marked a high/low of Rs. 5.45 / Rs. 4.67. The scrip last closed at Rs. 4.79 as of June 08, 2026. For the last 52 weeksā it has posted a high/low of Rs. 5.81 / Rs. 2.99.
The promotersā holding has been constant around 29.15% for the last three quarters ended on March 31, 2026. The counter is traded above the RI price with vested interest operations.
This is the 2nd RI from the company since December 2022. SML posted Growth in its top lines for reported periods. It marked hefty gains for FY25 following exceptional items. The counter is kept above the RI price by vested interests to lure investors. There is no harm in skipping this pricey and dicey RI offer.
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
