Only Buyers In This Penny Stock Under Re 1: Hit Upper Circuit As Company Announces Additional Deployment of Rs 0.71 Billion to Enhance Operations
From Rs 0.08 to Rs 0.92 per share, the stock gave multibagger returns of 1,050 per cent in 3 years.
On Friday, the shares of Standard Capital Markets Ltd hit a 5 per cent upper circuit to Rs 0.92 per share from its previous closing of Rs 0.88 per share. The stock’s 52-week high is Rs 3.52 and its 52-week low is Rs 0.81.
Standard Capital Markets Limited, an NBFC, has announced a significant investment of Rs 0.71 billion to further bolster its operations. This latest allocation follows the company's previous announcement on December 17, 2024, where it disclosed an initial deployment of Rs 1.3 billion. This combined investment of Rs 2.01 billion stems from the successful issuance of INR 5 billion worth of Non-Convertible Debentures (NCDs). This capital infusion will be strategically utilized to enhance operational efficiency, expand capacity, and drive overall business growth.
The company recently issued 5,600 secured NCDs at a face value of Rs 1,00,000 each through a private placement. This issuance resulted in a total issue size of Rs 56 crore. Prior to this, Standard Capital Markets Limited had already 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.
Beyond operational enhancements, the remaining proceeds from the NCD issuance will be strategically allocated towards various key areas. These include expanding the company's market presence, addressing working capital requirements, and reducing existing liabilities. This strategic allocation of funds will further strengthen Standard Capital Markets Limited's financial position and enable it to capitalize on emerging opportunities within the NBFC sector.
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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 159 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 0.92 per share, the stock gave multibagger returns of 1,050 per cent in 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.