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.

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.

Shah Metacorp Limited, formerly known as Gyscoal Alloys Limited, has announced its unaudited financial results for the quarter ended September 30, 2025, along with significant corporate actions that may reshape the company's future.

Key Financial Highlights

The company's financial performance for the quarter ended September 30, 2025, reflects its ongoing operations and recent strategic moves. While specific financial figures for the quarter were not provided, the company's subsidiaries showed promising results for the half-year period:

These figures represent the combined performance of Shah Metacorp's four subsidiaries: Shah Agrocorp Private Limited, Western Urja Private Limited, General Capital and Holding Company Private Limited, and Metcorp Trading LLC.

Strategic Acquisitions

In a move to expand its business portfolio, Shah Metacorp has completed two significant acquisitions:

1. An 85.60% stake in General Capital and Holding Company Private Limited
2. An 80.00% stake in Metacorp Trading LLC

Both acquisitions were executed through share swap arrangements, with the company issuing and allotting equity shares on July 4, 2025. As a result, these entities have become subsidiaries of Shah Metacorp, potentially broadening the company's operational scope and market presence.

Equity Fundraising Activities

Shah Metacorp has also undertaken substantial equity fundraising initiatives:

1. Issuance of 25.58 crore equity shares at Rs. 4.71 per share
2. Conversion of 3.55 crore share warrants into equity shares
3. Issuance of 4.40 crore additional share warrants convertible into equity shares at Rs. 4.71 per share

These actions suggest that the company is actively seeking to strengthen its capital base, possibly to fund its expansion plans or improve its financial position.

Challenges and Risk Factors

While the company appears to be on a growth trajectory, it faces some challenges:

• Long-standing trade receivables amounting to Rs. 88.82 crore remain unrecovered as of September 30, 2025.
• The company has recognized a provision for doubtful debts of Rs. 66.52 crore against these outstanding receivables.
• Management expects to recover these amounts in subsequent quarters but has indicated that unrecovered portions may be written off if recovery efforts fail.

Looking Ahead

Shah Metacorp's recent corporate actions, including major acquisitions and equity fundraising, indicate a strategic shift that may significantly impact its future operations and financial performance. The company's ability to integrate its new subsidiaries effectively and address the challenges related to outstanding receivables will be crucial factors to watch in the coming quarters.

Investors and stakeholders will likely keep a close eye on how these developments translate into financial performance and whether the expanded business portfolio leads to improved revenues and profitability for Shah Metacorp Limited.