2:9 Bonus Share: IT Stock in Focus After Board Approves...

Synopsis: A BSE-listed Web3 company has approved a selective bonus share issue in a 2:9 ratio, with promoters voluntarily giving up their entitlement so that all new shares go exclusively to public shareholders.

In a rare move in Indian capital markets, a Web3-focused company listed on BSE has approved a bonus issue where the promoter group has chosen to step aside entirely. The bonus shares will be issued only to public investors in a 2:9 ratio – two new shares for every nine held – a structure designed to reward retail participation and push the company closer to the mandatory 25 percent public shareholding threshold.

With a market cap of Rs. 1,170 Crore, the shares of String Metaverse Ltd. last traded on the exchange on April 29, 2026. Trading is restricted on April 30, 2026, due to “Trading Restricted – On account of IRP as per IBC/Recommencement post IBC.” The stock rose 4.69 percent from its previous closing price of Rs. 9.69 and currently trades at a P/E of 14.6. The stock can only be traded during limited call auction time slots (around 9:30 AM, 11:30 AM, 1:30 PM, and 3:30 PM), not continuously like normal stocks.

A Selective Bonus Issue That Puts Public Shareholders First

String Metaverse Ltd’s board, at its meeting on April 29, 2026, approved in principle a bonus equity share issue in the ratio of 2:9 – meaning two new shares for every nine shares held. What makes the move stand out is that the promoter and promoter group have voluntarily waived their right to receive the bonus shares. As a result, the entire allotment will go exclusively to eligible public shareholders, subject to regulatory and shareholder approvals.

The MPS Angle

The strategic intent behind the structure is clear. As of March 2026, public shareholding in the company stood at 18.20 percent, well below the 25 percent Minimum Public Shareholding (MPS) level mandated by SEBI. The company had already taken steps to address this, including an Offer for Sale in April 2026 that saw retail subscription reach nearly 500 percent. The selective bonus issue is the next step in that effort, as the promoter waiver would effectively raise the public shareholding stake without any fresh dilution from the company’s side.

A Rare Structure in Indian Markets

Bonus issues in India are typically issued on a pro-rata basis to all shareholders. Structures where promoters voluntarily forgo their entitlement are rare and are more commonly seen in regulatory or restructuring-driven scenarios. The company says this proposal is purely strategic and voluntary, reflecting a shift in how it views its relationship with public investors.

Managing Director Ganesh Meenavalli framed the move as a statement of intent: “Public shareholders are not just participants, but partners in the Company’s journey.” The record date and final entitlement mechanics will be disclosed once all requisite approvals from shareholders, stock exchanges, and regulators are in place. The issue will be implemented in compliance with the Companies Act, 2013, and SEBI (LODR) Regulations.

Financial Highlights

String Metaverse has been on a sharp growth curve. In Q3 FY26 (December 2025), revenue surged 139.66% year-on-year to ₹278 crore, while net profit jumped 180% YoY to ₹28 crore. On a trailing twelve-month basis, total sales have nearly doubled to ₹864 crore from ₹407 crore in FY25, with net profit climbing from ₹35 crore to ₹81 crore. Operating profit margins held steady at 11%. Adding to the positive picture, promoter shareholding has steadily risen since September 2024, signalling growing internal confidence in the company’s Web3 and gaming-focused business model.

About the Company

String Metaverse Limited is a technology-driven company focused on emerging digital ecosystems, including virtual reality, augmented reality, and blockchain-based platforms. The company aims to build immersive digital experiences and solutions across sectors such as gaming, education, and enterprise applications. By leveraging metaverse technologies, it is working to create interactive virtual environments and scalable digital infrastructure. With a focus on innovation and next-generation internet trends, the company is positioning itself to capitalize on opportunities in the evolving Web3 and digital economy space.

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