Shah Metacorp-Strike Eco pact: ₹25 crore funding in 2026

Key announcement from Shah Metacorp

Shah Metacorp Ltd, an Ahmedabad-based manufacturer and exporter of stainless steel and mild steel long products, has signed an agreement with Strike Eco Grid to support renewable energy projects with funding of up to ₹25 crore. The company said it has completed the acquisition of a 26% stake in Strike Eco Grid and entered into a strategic memorandum of understanding (MoU) with Strike Eco. The collaboration is positioned around joint development of renewable energy and infrastructure projects, funding support, and business expansion. Shah Metacorp also indicated it may raise its shareholding in Strike Eco to as high as 75% in phases. The company linked the step to its entry into renewable energy initiatives.

What the MoU covers

According to the company statement, Shah Metacorp plans to provide funding support of up to ₹25 crore for solar EPC, captive power, and open access power projects. The scope also extends to renewable infrastructure businesses and sustainability-linked activities. Beyond project funding, the MoU includes broader business expansion and joint development opportunities between the two firms. The company described the arrangement as a strategic partnership, with Strike Eco Grid as the operating platform for renewable initiatives. The stated intent is to build a renewable energy and sustainable infrastructure presence alongside Shah Metacorp’s core metals business.

Stake acquisition and potential increase to 75%

Shah Metacorp said the initial 26% stake acquisition in Strike Eco Grid has been completed, and earlier disclosures referenced the entry as having taken place in April 2026. The company has also said the proposed transaction remains subject to due diligence, regulatory approvals, and execution of definitive agreements, reflecting the staged nature of the broader plan. Shah Metacorp added that it may further increase its stake up to 75% in phases. Any step-up is linked to business performance, project execution, and mutual approvals between the parties. This structure keeps the current holding as a significant minority stake while leaving room for a move toward control later.

New business lines being explored

The companies said they plan to jointly explore opportunities beyond basic solar execution. These include solar parks, carbon credit advisory, ESG consulting, energy storage, and green hydrogen businesses. Shah Metacorp also referred to ESG-linked renewable businesses as part of the funding scope. In the company’s communication, CEO Viral Shah said the group aims to establish a long-term presence in renewable energy and sustainable infrastructure. The stated opportunities span both project development and advisory-type services tied to sustainability.

Additional funding option of ₹36 crore over two years

Separate disclosures around the partnership said Shah Metacorp may arrange additional funding support of up to ₹36 crore in a phased manner within two years. This additional tranche is contingent on business performance and operational milestones. If the initial ₹25 crore project funding and the additional ₹36 crore support are fully deployed, the potential total financial commitment indicated is ₹61 crore. The company has presented this as an option-based expansion path rather than a single upfront outlay. Any such funding is framed as linked to project progress and targets.

Rights issue update and capital-raising details

Around the same period, Shah Metacorp also announced a rights issue to raise up to ₹49.80 crore for expansion. The issue is scheduled to open on 11 June and close on 24 June, with a price of ₹4.86 per share. The offering comprises up to 10.24 crore fully paid-up equity shares with a face value of Re 1 each, aggregating to ₹49.80 crore. The ratio disclosed is 36 equity shares for every 311 shares held, with a record date of 27 May. The company said it intends to deploy proceeds toward strategic growth and expansion plans.

Stock move and near-term market reaction

Shah Metacorp’s share price reaction was immediate after the renewable energy investment narrative became public. One report noted the stock jumped over 4% on Tuesday after the company announced the investment tied to Strike Eco. Another market update around the rights issue said the stock rose over 6%, and cited a prior close of around ₹5.09 per share on 23 May. On the day referenced, the stock opened at ₹5.20 on the BSE, hit an intraday high of ₹5.41, and an intraday low of ₹5.12. These moves were presented alongside the company’s disclosures on renewables and fundraising.

Financial snapshot disclosed by the company

Shah Metacorp reported revenue of ₹149 crore and profit after tax (PAT) of ₹4 crore for Q3 FY26, as cited in the provided information. The renewable energy partnership is being pursued alongside this reported financial performance. The company has framed the Strike Eco association as an entry into solar EPC, open access power, and ESG-linked renewable businesses.

Timeline and deal terms at a glance

Other investment actions disclosed

Shah Metacorp has also disclosed planned support for its newly established wholly owned subsidiary, Shah Metacorp Holdings USA INC, to expand international operations. The plan includes an investment of up to USD 200,000 and an unsecured intercorporate loan of USD 200,000. The timeline cited for this US support is FY2026-27 and FY2027-28. These initiatives were disclosed alongside the renewable energy entry and the rights issue plan.

Why the development matters for metals and steel investors

For an iron and steel products company, the move into renewables is being presented as a diversification into sustainable infrastructure and power-linked projects. The collaboration also references captive and open access power projects, which are relevant operating themes for industrial companies even when specific project details are not disclosed. At the same time, Shah Metacorp has kept the path phased: a completed 26% stake, optional funding, and a conditional stake increase linked to milestones and approvals. The market response shows investors are watching both the renewable strategy and the company’s capital-raising actions closely.

What to watch next

The next key milestones are the execution of projects under the MoU and any subsequent steps toward increasing the Strike Eco stake, subject to due diligence and approvals. Investors will also track the rights issue schedule, including subscription dates and final allotment outcomes. Any further disclosures on project pipeline, funding drawdowns, or definitive agreements around the stake increase are likely to shape how the market prices the renewable expansion plan.