Multibagger Penny Stock Under Re 1; Board Allocates 72,45,74,640 Shares to Non-Promoters Upon Conversion of Loan

The stock gave multibagger returns of 750 per cent in 3 years and 1,250 per cent in 5 years.

On Tuesday, the shares of Standard Capital Markets Ltd gained 3.03 per cent to Rs 0.68 per share from its previous closing of Rs 0.66 per share. The stock’s 52-week high is Rs 2.65 per share and its 52-week low is Rs 0.63 per share.

The Board of Standard Capital Markets Ltd. has approved a preferential issue of 72,45,74,640 equity shares, each with a face value of Re 1, to non-promoter entities, Flash Merchandise Private Limited and YUCCA Merchants Private Limited, through a loan conversion at an issue price of Rs 1.30 per share, totalling Rs. 94,19,47,032. This issuance, adhering to SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and the Companies Act, 2013, will result in Flash Merchandise Private Limited holding 38,46,15,384 shares (15.67 per cent) and YUCCA Merchants Private Limited holding 33,99,59,256 shares (13.85 per cent) post-allotment, subject to shareholder approval.

Additionally, Standard Capital is expanding significantly. They've approved sponsoring an AIF, "Standard Global Opportunities Fund," with Rs 50 crore, and their subsidiary will manage it, pending approvals. They're also acquiring US Financial & Investment Limited in Hong Kong and establishing "STANDARD GLOBAL FINANCE" in Dubai's DIFC for lending and investment services. Furthermore, Standard Capital is investing another Rs. 2.09 billion into operations, following a prior Rs. 2.01 billion, to enhance efficiency and scale. This capital injection aims to boost profitability and solidify their market leadership in the NBFC sector.

About the Company

Standard Capital Markets Ltd, an NBFC established in 1987 and registered with the RBI, offers a comprehensive suite of financial services beyond traditional banking. These include advisory services, arbitration, due diligence, legal assistance, and licensing support. To further expand its reach, the company established a wholly owned subsidiary, Standard Capital Advisors Limited, specializing in merchant banking activities. With a strong commitment to customer satisfaction and a focus on integrity and innovation, Standard Capital Markets Ltd. aims to provide valuable financial solutions to individuals and businesses while actively contributing to the growth of the education sector by ensuring accessibility to financial opportunities.

According to Quarterly Results, the net sales increased by 106 per cent to Rs 20.28 crore in Q3FY25 compared to net sales of Rs 9.84 crore in Q2FY25. The company reported a net loss of Rs 45.10 crore in Q3FY25 compared to a net loss of Rs 0.70 crore in Q2FY25. The company reported net sales of Rs 38.16 crore and a net loss of Rs 44.05 crore in 9MFY25 while the company reported net sales of Rs 27.39 crore and a net loss of Rs 10.71 crore in FY24. 

The company has a market cap of Rs 116 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 13.89 per cent stake while the public owns an 86.11 per cent stake as of December 2024. The stock gave multibagger returns of 750 per cent in 3 years and 1,250 per cent in 5 years.

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

1 comments on article "Multibagger Penny Stock Under Re 1; Board Allocates 72,45,74,640 Shares to Non-Promoters Upon Conversion of Loan"

Semmel S

Your analysis is easy to understand. Please consider providing your insights into Godha Cabcon Shares and Gujarat Toolroom Shares

3/13/2025 1:05 PM

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