Rs 73 Crore Capital Boost: This Small-Cap Stock Gains Investor Attention

String Metaverse Ltd has approved a preferential issue of up to 8,32,03,383 fully paid-up equity shares at Rs 8.85 each, including a premium of Rs 7.85 per share, to raise up to Rs 73.63 crore from 21 non-promoter investors. The board cleared the proposed private placement at its meeting on September 17, 2026. The issue, which is subject to shareholder and regulatory approvals, will be made under the Companies Act and the Sebi Issue of Capital and Disclosure Requirements Regulations.

The proposed capital raise is meaningful relative to the company’s present market valuation. At a market capitalisation of about Rs 977.15 crore, the maximum issue size is equivalent to roughly 7.5 per cent of its market value. The company has not specified the intended use of the proceeds in the announcement.
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Altius Global Finance Pvt Ltd is proposed to receive the largest allotment of 5,42,37,288 shares, accounting for about 65 per cent of the proposed fresh issue. Kamal Jagdish Gupta and Sonal Kamal Gupta are each proposed to receive 50 lakh shares. Other significant proposed allottees include Hello Money Advisors LLP with 40,39,548 shares, Palatla Bharath Kumar with 30 lakh shares, R R Food Import LLP with 29,09,604 shares and Rina Jain with 18,07,909 shares.

The preferential issue would add a sizeable new block of non-promoter ownership and expand the company’s equity base. The issue price of Rs 8.85 is also above the market price of Rs 7.61 recorded at 3.29 p.m. on September 17, 2026, implying a premium of about 16.3 per cent to that trading level.

The fund-raising proposal follows a period of rapid reported financial growth. In the June quarter of FY27, the company reported net sales of Rs 392.40 crore, up 97.33 per cent year-on-year and 9.18 per cent sequentially. Profit after Tax rose 101.79 per cent year-on-year to Rs 36.92 crore, while PBIDT excluding other income increased 102.75 per cent to Rs 43.83 crore.

The company operates in technology services, gaming software development and high-frequency trading, while its stated strategic areas include artificial intelligence, Web3 infrastructure, blockchain, digital assets, fintech and enterprise technology solutions.

The stock was down 4.99 per cent from its previous close of Rs 8.01 at the stated market price. Despite the recent pullback, it has gained 4,796.09 per cent over the past year, compared with a 2.65 per cent decline in the BSE 500. It remains about 71.2 per cent below its 52-week high of Rs 26.43.

Disclaimer: The article is for informational purposes only and not investment advice.