2:1 bonus share; 10:1 stock split in FY24: Multibagger penny stock at Rs 1.64 - Converts loans into shares & acquires full control of insurance subsidiary!

From Rs 0.04 to Rs 1.59 per cent, the stock gave multibagger returns of 3,875 per cent in 3 years.

Today, the shares of Standard Capital Markets Ltd gained 1.92 per cent to Rs 1.59 per share from its previous closing of Rs 1.56 per share. The stock’s 52-week high is Rs 3.52 and its 52-week low is Rs 1.15.

The Board of Directors of Standard Capital Markets Limited convened and approved several key resolutions by SEBI Listing Regulations. One of the primary resolutions was the allotment of 26,00,00,000 equity shares of face value Re 1 each at an issue price of Rs 2.75 per share, which includes a premium of Rs 1.75. This allotment was made to convert outstanding unsecured loans into equity, aggregating to Rs 71,50,00,000. The allotment was distributed between two non-promoter entities: Sunil Sales and Services Pvt Ltd received 11,00,00,000 shares, while Shark Suppliers Private Limited was allotted 15,00,00,000 shares. As a result of this transaction, the paid-up equity shares capital of the company increased to Rs 173,00,03,000, comprising 173,00,03,000 equity shares of face value Re 1 each.

In addition to the equity allotment, the Board also decided to increase their shareholding in a wholly-owned subsidiary, Standard Insurance Broking Limited. Previously, Standard Capital Markets Limited held 75 per cent shareholding amounting to 7,50,000 shares. This has now been increased to 100 per cent, equating to 10,00,000 shares. This strategic move underscores the company's intent to consolidate its control and expand its footprint in the insurance broking sector. This proactive restructuring aims to enhance the company's financial stability and market positioning.

Also Read: Mukul Agrawal bought 1,67,000 shares & FIIs bought 5,51,688 shares: Multibagger company joins SPV as Part of Government's 'Make in India' Drive for Defence and Aerospace Sector Enhancement

About Standard Capital Markets Ltd

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 and recent 100 per cent CAGR profit growth over the last 5 years, they've established a wholly-owned subsidiary, Standard Capital Advisors Limited, to expand their reach into merchant banking activities.  

The company's financial performance has been on a steep upward trajectory. In FY24, net sales shot up by 143 per cent to Rs 27.40 crore and net profit skyrocketed 380 per cent to Rs 10.71 crore compared to FY23. Looking at the annual results (Q4FY24), where net sales jumped a significant 200 per cent to Rs 10.7 crore and net profit witnessed a remarkable 58 per cent growth to Rs 2.52 crore compared to Q4FY23.

The company's shares undergo a 2:1 bonus share and stock split from Rs 10 to Rs 1 on the ex-date i.e., December 29, 2023. According to the shareholding pattern, promoters of the company only own a 17.74 per cent stake while an 82.26 per cent stake is owned by the public. From Rs 0.04 to Rs 1.59 per cent, the stock gave multibagger returns of 3,875 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.