Multibagger penny stock under Rs 5: Company Issues Rs 5 Billion NCDs, Deploys Rs 1.3 Billion Towards Operations

From Rs 0.06 to Rs 0.96 per share, the stock gave multibagger returns of 1,500 per cent in 3 years.

On Tuesday, the shares of Standard Capital Markets Ltd plunged 1.03 per cent to Rs 0.96 per share from its previous closing of Rs 0.97 per share. The stock’s 52-week high is Rs 3.52 and its 52-week low is Rs 0.95.

Standard Capital Markets Limited, a prominent Non-Banking Financial Company (NBFC), has announced the successful issuance of Rs 5 billion in Non-Convertible Debentures (NCDs). This strategic move aims to bolster the company's capital structure and provide financial backing for its various growth initiatives. The issuance of these NCDs represents a significant step in securing the necessary resources to facilitate expansion and further development within the company.

A substantial portion of the raised capital, specifically Rs 1.3 billion, has been strategically allocated towards enhancing and expanding the company's existing operations. This investment is geared towards several key objectives, including driving operational efficiency to streamline processes and improve productivity, increasing capacity to handle growing business demands, and ultimately supporting the company's ongoing growth trajectory and market position.

The remaining funds generated from the NCD issuance will be strategically deployed for a variety of purposes. These include further expansion into new markets or product lines, addressing working capital needs to ensure smooth day-to-day operations, and reducing existing liabilities to improve the company's overall financial health.

Commenting on the issuance, Management of Standard Capital Markets Limited, said, "The successful issuance of these NCDs is a testament to the strong investor confidence in our business model and growth prospects. The deployment of INR 1.3 billion towards operations is part of our ongoing commitment to enhancing operational excellence and strengthening our market position. We remain focused on delivering long-term value for our shareholders and customers."

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. 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 85.14 per cent stake is owned by the public as of September 2024. From Rs 0.06 to Rs 0.96 per share, the stock gave multibagger returns of 1,500 per cent in 3 years.

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