What Is the Fund Raise?
String Metaverse has structured a capital raise through the issuance of 8,32,03,383 fully paid-up equity shares with a face value of ₹1 each. The shares are priced at ₹8.85, which includes a securities premium of ₹7.85 per share. This preferential issue is being conducted via private placement to 21 identified investors, including Altius Global Finance Private Limited, which is slated to receive the largest allocation of 5.42 crore shares.
The pricing is in strict accordance with SEBI (ICDR) Regulations, 2018, ensuring regulatory compliance for the transaction.
Use of Proceeds
- Settlement of outstanding bank dues under a One-Time Settlement (OTS) arrangement of up to ₹34 crore
- Repayment of existing unsecured loans of the company amounting to up to ₹6 crore
- Funding incremental working capital requirements for high-performance computing and gaming projects
- General corporate purposes to strengthen the company's administrative and operational framework
Strategic Rationale
The fund raise is a critical component of the company's ongoing transition from its legacy paper manufacturing roots into a global digital technology enterprise. By settling ₹34 crore in bank dues through an OTS, String Metaverse aims to significantly de-leverage its balance sheet, creating a cleaner financial structure to support its high-growth Web3 business. This infusion of capital signals a shift toward scaling its AI-driven digital infrastructure and expanding its global user ecosystem, which recently crossed five million users across its decentralized platforms.
Business Overview
Formerly known as Bio Green Papers Limited, String Metaverse has pivoted to focus on integrated Web 3.0, online gaming, blockchain, and fintech solutions. Its business model centers on the String Agentic Finance Operating System (AFOS), which coordinates AI and DeFi for autonomous financial transactions. The company operates high-performance computing data centers and validator node networks across various blockchain protocols.
This multi-vertical structure is designed to capture value from the tokenization of real-world assets and the burgeoning global gaming economy.
Financial Context
Financially, String Metaverse has demonstrated strong momentum, with annual operating revenue reaching ₹1,069 crore in FY26, a 163% increase year-on-year. Net profit for the same period surged by 192% to ₹102.48 crore, reflecting scalable platform economics. The company maintains a high Trendlyne Durability Score of 70 and an annual Return on Equity (ROE) of 30.92%.
Currently trading with a TTM Price-to-Earnings (PE) ratio of 9.88x compared to the industry average of 30.1x, the company appears focused on aligning its market valuation with its transformed digital service profile.
