Bio Green BSE RI review - (May apply)

•    The company is engaged in the business of eco3 metaverse related services and solutions.
•    Its current name is misguiding and standalone financial data shows inconsistency in its financial performance. 
•    Promoter’s higher holding it perhaps the only attraction for a while.
•    The RI is aggressively priced and counter is well managed to temp investors for RI.
•    Well-informed investors may park moderate fund for medium to long term.

PREFACE:
The company is coming out with its self-managed RI for which it has filed offer documents on March 27, 2025 but were not available on the designated exchange till the noon of April 15, 2025. What is more, the offer document failed to report record date for the eligibility of stakeholders in “The Issue” data on page 1 of the offer document. Higher promoter’s holding is the only attraction in this company, where clarity is needed on its business model, as it marked inconsistency in its top and bottom lines for the reported periods, on a standalone basis.

ABOUT COMPANY:
Bio Green Papers Ltd. (BGPL) was originally incorporated as Shiv Sagar Paper and Chemicals Ltd, a public limited company under the Indian Companies Act, 1956, and received its Certificate of Incorporation from the Assistant Registrar of Companies, Andhra Pradesh, on March 17, 1994. Subsequently, the Company's name was changed to Bio Green Papers Limited, as reflected in the Fresh Certificate of Incorporation issued by the Registrar of Companies, Andhra Pradesh, on April 9, 2008.

The Company was admitted into the Corporate Insolvency Resolution Process (CIRP). During the Committee of Creditors (CoC) meeting held on February 26, 2024, the resolution plan submitted by Mr. Krishna Mohan Meenavalli (the "Resolution Applicant") was approved. The Hon’ble National Company Law Tribunal (NCLT), Hyderabad, at its hearing on May 28, 2024, in CP (IB) No. 97/7/HDB/2022 in the matter of Mr. Katepalli Venkateswara Rao Vs M/s Bio Green Papers Ltd, approved the resolution plan submitted by Mr. Krishna Mohan Meenavalli, including the Scheme of Arrangement for the merger of String Metaverse Limited into Bio Green Papers Limited. 

As per the approved resolution plan, upon the merger becoming effective, and without requiring any further act or deed, the name of Bio Green Papers Limited will be changed to M/s String Metaverse Limited. The process of changing the Company’s name from Bio Green Papers Limited to String Metaverse Limited is currently under process.

String Metaverse is a pioneering Web3.0 enterprise. The organization is dedicated to integrating Finance, Games, and Communities (collectively referred to as the Metaverse) into the Web3 ecosystem. String Metaverse operates across four key domains, each designed to capitalize on the latest advancements in technology and drive innovation in the decentralized economy. These domains include eSports, Blockchain Games, Digital Asset Advisory, and the Agent Economy, which leverages AI integration. Each domain contributes uniquely to the platform's comprehensive ecosystem, enabling it to cater to diverse audiences and markets.

Currently the company has employed around 50 employees.

ISSUE DETAILS:
The company is coming out with a Rights Issue (RI) of 9471445 equity shares of Rs. 10 each at a fixed price of Rs. 52 per share to mobilize Rs. 49.25 cr. The RI opens for subscription on April 21, 2025, and will close on April 28, 2025. The company is offering RI in the ratio of 67 for 83 shares held by its eligible stakeholders as of the record date of April 04, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, shares will be listed on BSE. 

The issue is self-managed by the company, and xxx is the registrar to the issue. Aaryavart Advisors LLP is the legal advisor to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 10.70 cr. will stand enhanced to Rs. 11.64 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 605.45 cr.  

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has (on a consolidated basis) posted a total income/net profit/ - (loss) of Rs. NIL / Rs. – (1.26) cr. (FY23), and Rs. 152.08 cr. / Rs. 10.82 cr. (FY24). For H1 of FY25 ended on September 30, 2024, it earned a net of Rs. 12.13 cr. on a total income of Rs. 137.91 cr. On a standalone basis, it marked a dismal performance for the said periods. It posted a loss of Rs. – (4.68) cr. (FY23), net profit of Rs. 0.66 cr. (FY24) and loss of Rs. – (0.40) cr. (H1-FY25), on a total income of Rs. NIL, Rs. 5.30 cr., and Rs. 5.11 cr. respectively, on a standalone basis. Thus, the financial data on consolidated basis appears to have been fabricated to fetch fancy valuations.

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy post listings of RI shares based on its financial performance and future prospects. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 534535 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 100.04 on April 01, 2025, and opened on an ex-right basis at Rs. 82.56 on April 07, 2025. Since then, it has marked a high/low of Rs. 86.68 / Rs. 82.56. The scrip last closed at Rs. 86.68 as of April 15, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 86.68 / Rs. 11.79. The counter is currently under IRP: Stage 1.

The promoters’ holding has increased a bit to 89.03% for the last quarter ended with December 31, 2024 against 88.99% as of September 30, 2024. The counter is well managed above the RI value to lure investors.