Multibagger Penny Stock Under Re 1: NBFC Company Joins as Sponsor and Settlor for Category III AIF

The stock gave multibagger returns of 640 per cent in 3 years and 1,100 per cent in 5 years.

Standard Capital Markets Limited, a prominent Non-Banking Financial Company (NBFC), has announced its strategic move as the Sponsor and Settlor for a Category III Alternative Investment Fund (AIF). This initiative signifies a significant expansion of their financial services portfolio and reinforces their commitment to fostering growth within the Indian financial market. The company will inject an initial investment of ₹50 Crore into the fund's first scheme, with plans to augment this investment in subsequent schemes. The fund is designed to target annual returns ranging from 15% to 20%, offering high-yield opportunities to its targeted investors.

This Category III AIF, operating under the regulatory framework of the Securities and Exchange Board of India (SEBI), will focus on providing high-risk, high-reward investment opportunities. It will utilize complex financial instruments, including derivatives and structured products, and employ diverse strategies like leveraged strategies and private equity investments. By acting as both the Sponsor and Settlor, Standard Capital Markets Limited assumes a pivotal role in the fund's establishment, management, and governance, ensuring adherence to transparency, compliance, and investor-friendly practices. This strategic diversification aligns with the company's objective of delivering innovative financial solutions to institutional investors and high-net-worth individuals (HNIs).

The expansion into the AIF sector exemplifies Standard Capital Markets Limited's dedication to providing cutting-edge financial products and services. Their dual role as Sponsor and Settlor demonstrates their capability to lead and manage intricate financial structures, thereby offering investors unique and lucrative opportunities within the dynamic Indian financial landscape. This initiative is marked by key highlights such as the initial Rs 50 Crore investment, targeted returns of 15 per cent to 20 per cent, and the utilization of complex investment strategies, all while operating under stringent SEBI guidelines to maintain transparency and robust governance.

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 over Rs 100 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 640 per cent in 3 years and 1,100 per cent in 5 years.

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