NBFC Penny Stock Below Rs 1 Bets Big On Debt: Okays Multi-Series NCDs of Rs 900 Cr With Attractive 10% IRR

The shares of Standard Capital Markets Ltd., a small-cap NBFC, are trading on the BSE for less than Rs 1. With a market valuation of Rs 79.58Cr, the company's shares finished Wednesday at a 2.13% low of Rs 0.46 per share. With an average operating profit margin of 86% in FY24, the company's stock is currently trading at about 0.34 times its book value, indicating an attractive valuation. However, Thursday's board-approved issue of non-convertible debentures (NCDs) worth Rs 900 crore, unleashing capital through smart debt structuring, is what will keep traders' attention on the company in the next sessions.

"We wish to inform you that the Board of Directors of the Standard Capital Markets Limited in its Meeting held today i.e. April 30th 2025 at 4:00 P.M. and Concluded at 04:55 P.M. at its Registered office have, inter - alia, Considered, approved the issuance of Secured, Unlisted, Unrated, Redeemable Non-convertible Debentures ("NCDs") having a face value of INR 1,00,000 (Indian Rupees One lakh) each, aggregating up to an amount of INR 9,00,00,00,000/- (Indian Rupees Nine Hundred Crores Only) in one or more tranches on a Private Placement basis," said Standard Capital Markets in a BSE filing.

The proposed issuance will be organized into five series: Series I will consist of up to 25,000 shares in one or more tranches, totaling up to Rs 250 Cr; Series II will consist of up to 20,000 shares in one or more tranches, totaling up to Rs 200 Cr; Series III will consist of up to 13,000 shares in one or more tranches, totaling up to Rs 130 Cr; Series IV will consist of up to 17,000 shares in one or more tranches, totaling up to Rs 170 Cr; and Series V will consist of up to 15,000 shares in one or more tranches, totaling up to Rs 150 Cr.

On May 30, 2030, Series I will mature; on May 30, 2029, Series II; on May 30, 2029, Series III; on May 30, 2028, Series IV; and on May 30, 2028, Series V. The internal rate of return for the five NCD tranches is 10%, which is payable at the conclusion of the NCD's tenor.

As an indication of the makeup of its capital base, the firm has aggressively used Non-Convertible Debentures (NCDs) as a strategic tool to raise funds for its expansion as well as operational requirements, improving efficiency.

According to MarketsMojo data, Standard Capital Markets had notable volatility yesterday, falling to a new 52-week low of Rs. 0.45 and underperforming its sector by 0.47%. Over the previous two days, the stock has declined consecutively, for a total reduction of 4.17%. Moving averages show that Standard Capital Markets is in a negative trend as it is trading below its 5-, 20-, 50-, 100-, and 200-day averages.