Shah Metacorp Approves ₹50 Cr Rights Issue, US Investment, and Loan Conversion

Shah Metacorp Limited has announced significant corporate developments following its board meeting held on December 29, 2025. The company, formerly known as Gyscoal Alloys Limited, approved multiple strategic initiatives aimed at strengthening its financial position and expanding its international presence.

Rights Issue Approval

The board approved the issuance of fully paid-up equity shares with a face value of ₹1.00 each through a rights issue worth up to ₹50.00 crores. The rights issue will be offered to eligible equity shareholders as on the record date, which will be determined and notified subsequently.

Parameter:	Details
Issue Type:	Rights Issue
Maximum Amount:	₹50.00 crores
Share Face Value:	₹1.00 each
Eligible Shareholders:	As on record date
Regulatory Compliance:	SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

The specific terms including issue price, rights entitlement ratio, record date, and timing will be determined by the Rights Issue Committee and disclosed to stock exchanges in due course.

Rights Issue Committee Reconstitution

The board reconstituted the Rights Issue Committee effective December 29, 2025, with the following composition:

Name & Designation:	Position in Committee
Mona Viral Shah (Executive Director):	Chairperson
Dipali Manish Shah (Non-executive Non-Independent Director):	Member
Adityabhai Jagdishbhai Joshi (Non-executive Independent Director):	Member
Viral Shah (Chief Executive Officer):	Member

US Subsidiary Investment

The company approved investment of funds up to USD 100,000.00 in Shah Metacorp Holdings USA INC by subscribing to share capital up to 50% during FY2025-26 and FY2026-27. The US company was registered with Delaware Secretary on March 31, 2025, and has not yet commenced business operations.

Investment Details:	Specifications
Investment Amount:	USD 100,000.00
Shareholding:	Up to 50%
Investment Period:	FY2025-26 and FY2026-27
Share Price:	USD 0.01 per share (par value)
Business Focus:	General trading, hospitality, technology, stainless-steel products

The investment aims to enhance Shah Metacorp's product portfolio and value-added services through diversification of offerings. No prior approval from Reserve Bank of India is required as per Foreign Exchange Management (Overseas Investment) Directions, 2022.

Loan Agreement Modification

The board approved modification of the original loan agreement with promoter Mona Viral Shah. The modification adds a clause for converting the loan into equity shares under the proposed rights issue, subject to shareholder approval through postal ballot.

Loan Agreement Details:	Information
Lender:	Mona Viral Shah (Director & Promoter)
Original Agreement Date:	May 06, 2025
Loan Size:	Up to ₹75.00 crores
Current Shareholding:	106,619,848 shares (12.04%)
Loan Nature:	Unsecured, repayable on demand
Conversion Option:	Into fully paid-up equity shares

The conversion provision allows the borrower to convert the outstanding loan amount along with interest into fully paid-up equity shares, subject to compliance with Section 62 of the Companies Act, 2013, and SEBI guidelines.

Related Party Transactions and Approvals

The board approved several related party transactions, including the conversion of Mona Shah's loan into equity shares and the investment in the US subsidiary. The company also appointed intermediaries for the proposed rights issue and fixed the date and time for postal ballot proceedings.

The board meeting commenced at 8:30 PM and concluded at 9:30 PM on December 29, 2025. These strategic initiatives reflect the company's focus on capital restructuring and international expansion to support future growth objectives.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.61%	+2.06%	+26.92%	+23.44%	+12.76%	+89.66%

Shah Metacorp Limited has informed stock exchanges about a significant legal development involving an insolvency application filed against the company. The disclosure was made in compliance with regulatory requirements.

NCLT Application Details

Tejomay Exim Corporation has filed an application against Shah Metacorp Limited at the National Company Law Tribunal (NCLT) Ahmedabad under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application represents a formal legal proceeding that could have significant implications for the company's operations.

Parameter	Details
Applicant	Tejomay Exim Corporation
Tribunal	NCLT Ahmedabad
Legal Provision	Section 9 of IBC, 2016
Expected Financial Impact	Not yet determined

Regulatory Compliance

The company has made this disclosure pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information was provided in accordance with SEBI Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which mandates specific disclosures regarding litigation matters.

Financial Implications

Shah Metacorp Limited has stated that the expected financial implications arising from this legal proceeding, including potential compensation or penalties, are not yet determined. This uncertainty reflects the early stage of the insolvency application process and the need for further legal proceedings to establish any financial obligations.

Company Background

Shah Metacorp Limited, formerly known as Gyscoal Alleys Limited, operates in the steel sector. The company's registered office is located at Plot No. 2/3 GIDC Ubkhal, Kukarwada, Tal. Vijapur, Dist. Mehsana, Gujarat.

The company will continue to monitor the situation and provide updates as required by regulatory authorities.