IT Stock Hits 5% Upper Circuit After Company Sets Record Date for 1:10 Stock Split

Synopsis: Shares of this stock hit the upper circuit 5% after announcing a 1:10 stock split to boost liquidity. The move aligns with its business transformation into tech and metaverse sectors. It also supports capital restructuring and future expansion plans.

Small-cap IT company that is technology-focused and operates primarily in the technology field and digital solutions, with a focus on new technologies, the metaverse, IT services, and digital platforms saw its shares hit 5 percent upper circuit in the day’s trade upon declaring record date for stock split.

With a market capitalization of Rs. 1,335 crore, String Metaverse shares hit a 5 percent upper circuit at a price of Rs. 114.70 after a long chain of lower circuits. In fact, the stock had already been in a long-term downtrend for the last 3 months.

Corporate Action

As per the official disclosure, the company has fixed 24th April 2026 as the record date to determine the eligibility of shareholders for the stock split. The split involves the subdivision of one equity share with a face value of ₹10 into ten equity shares with a face value of ₹1 each.

The primary objective of this stock split is to enhance liquidity in the stock. By reducing the face value and market price per share, String Metaverse aims to make its stock more affordable and attractive, especially to small investors. The broader plan is to transform the company and the restructuring phase. 

After the insolvency issue, they moved the business from the paper business to IT solutions and Web3 and the metaverse technologies. However, the stock had been under pressure, falling significantly (around 50% in recent months), reflecting weak market sentiment and investor caution. Overall, the company is preparing for the revival and capital restructuring and gaining investor confidence.

About The Company

String Metaverse Limited is engaged in providing software development services related to the gaming industry and is undergoing a major transformation into a Web3 and digital asset company, focusing on tokenization and digital infrastructure.

The company is building a “Tokenization as a Service (TaaS)” platform, enabling real-world assets like stocks, gold, and indices to be traded on blockchain, already achieving $8.93M transaction volume. Strategically, it aims to create a global Web3 ecosystem with millions of users and tokenized assets, positioning itself in a multi-trillion-dollar opportunity.

Revenue reached around Rs. 407 Cr (FY25), showing strong growth from Rs. 151 Cr in FY24. Net profit increased to about Rs. 35 Cr, indicating improving earnings after earlier losses. Net profit margin is around 8–10 percent, with improving operational efficiency. Low debt   (D/E ~0.12) and improving net worth indicate a financially stable position. 

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