Back-to-Back Upper Circuits In This Penny Stock Under Re 1; Complete Details Inside
From Rs 0.08 to Rs 0.96 per share, the stock gave multibagger returns of 1,100 per cent in 3 years.
On Monday, the shares of Standard Capital Markets Ltd hit a 5 per cent upper circuit to Rs 0.96 per share from its previous closing of Rs 0.920 per share. The stock’s 52-week high is Rs 3.52 and its 52-week low is Rs 0.81.
The Board of Directors of the Company, in its meeting held on January 17, 2025, approved the allotment of 4,500 unrated, unlisted, secured Non-Convertible Debentures (NCDs) on a Private Placement basis. Each NCD has a face value of Rs 1,00,000 and was issued at an issue price of Rs 1,00,000, resulting in a total issue size of Rs 45,00,00,000. This allotment was made under the terms of the Private Placement cum application letter.
The company additionally, issued 5,600 secured NCDs at a face value of Rs 1,00,000 each through a private placement, amounting to Rs 56 crore. Furthermore, the company had allotted 1,500 unrated, unlisted, secured NCDs with a face value of Rs 1,00,000 each, aggregating to Rs. 15,00,00,000. These NCD issuances have provided the necessary capital to fuel the company's growth initiatives. The remaining proceeds from the NCD issuance will be strategically allocated towards expanding market presence, addressing working capital requirements, and reducing existing liabilities, thereby strengthening the company's financial position and enabling it to capitalize on emerging opportunities within the NBFC sector.
Earlier, Standard Capital Markets made a significant investment of Rs 0.71 billion. This investment follows a previous allocation of Rs. 1.3 billion announced on December 17, 2024. The combined investment of Rs. 2.01 billion is derived from the successful issuance of Rs 5 billion worth of NCDs. This capital infusion will be strategically utilized to enhance operational efficiency, expand the company's capacity, and drive overall business growth.
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About the Company
Established in 1987, Standard Capital Markets Ltd is a NBFC company registered with the RBI. They offer a variety of financial services including advisory (negotiations, project identification etc.), arbitration & mediation, due diligence, commercial contract services (drafting agreements etc.), litigation assistance, and even licensing (company incorporation, import/export licenses etc.). With a strong track record, the company established a wholly owned subsidiary, Standard Capital Advisors Limited, to expand its reach into merchant banking activities.
The company has a market cap of Rs 166 crore and has delivered good profit growth of 173 per cent CAGR over the last 5 years. According to the shareholding pattern, promoters of the company only own a 14.86 per cent stake while the public owns an 85.14 per cent stake as of September 2024. From Rs 0.08 to Rs 0.96 per share, the stock gave multibagger returns of 1,100 per cent in 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.