2:1 Bonus Share & 10:1 Stock Split: Multibagger penny stock at Rs 1.70 with 4,150 per cent returns; Board to raise Rs 4,01,50,00,000 via private placement

From Rs 0.04 to Rs 1.70 per share, the stock gave multibagger returns of 4,150 per cent in 3 years.

Today, the shares of Standard Capital Markets Ltd gained 2.41 per cent to Rs 1.70 per share from its previous closing of Rs 1.66 per share. The stock’s 52-week high is Rs 3.52 and its 52-week low is Rs 1.15.

Standard Capital Markets Limited is raising funds by issuing non-convertible debentures (NCDs). These are essentially debt instruments similar to bonds but with some key differences. Unlike regular bonds, these NCDs are secured, meaning they are backed by some of the company's assets. They are also unlisted and unrated, so they won't be traded on a stock exchange and haven't been assessed by a credit rating agency.

The company plans to issue a total of Rs 4,01,50,00,000 in these NCDs. The minimum investment amount will be Rs 10,00,000 each. Investors will receive a 10 per cent interest rate calculated using a specific formula. The NCDs will mature on March 31, 2031, or after 84 months, whichever is earlier. Interest payments will be made in a lump sum at the end of the investment period, and the principal amount will also be returned at that time. The NCDs will be offered through a private placement, meaning they will only be available to a select group of investors.

Earlier, the Company established a wholly-owned subsidiary, Standard Insurance Broking Limited. Registered under the Companies Act, 2013, the New Company has an authorized capital of Rs 1 crore divided into 10 lakh equity shares of Rs 10 each. Standard Capital Markets Limited will fully acquire these shares, with the entire capital being paid in cash. This new venture aims to become a direct broker under the Insurance Regulatory and Development Authority of India (IRDAI) as per the Insurance Brokers Regulations, 2018. Having already secured a No Objection Certificate (NOC) from IRDAI, Standard Capital Markets Limited will pursue the Insurance Broking License next. This strategic move allows Standard Capital Markets Limited to broaden its presence in the insurance broking sector and solidify its market position.

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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, the company established a wholly-owned subsidiary, Standard Capital Advisors Limited, to expand its 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), 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 14.86 per cent stake while an 85.13 per cent stake is owned by the public as of June 2024. From Rs 0.04 to Rs 1.70 per share, the stock gave multibagger returns of 4,150 per cent in 3 years.

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