Penny Stock Trading Below Rs 1 Approves Rs 200 Cr NCD Fundraise Amid Global Expansion Plans

Standard Capital Markets has announced plans to raise Rs 200 crore through private placement of NCDs, which created quite a stir among investors in Wednesday's trading.

As stated in the exchange filing dated May 6, 2025, the company's board has agreed upon the 7900 secured and unlisted, unrated NCDs which, at a value of Rs 1 lakh, gives an aggregate of Rs 79 crore. The NCDs have been issued on a private placement basis, coupled with an application letter.

"It is to inform you that the company's Board of Directors circulated on the 06th May 2025, which led to consideration and approval of the allotment of unrated NCDs. With an overall total of INR 79 crore on a private placement basis," was part of the wording in the filing released.

This follows a day after the firm disclosed they were in the middle of a new fundraising issue for the NCDs when they raised funds of Rs 121 crore through an NCD issuance, which included 12,100 NCDs. This was also composed of two separate allotments of NCDs amounting to 10,000 and 2,100 NCDs, respectively, with both face values of Rs 1 lakh. It was indeed confirmed that the approvals were received via board resolutions circulated on May 5 2025.

These spontaneous efforts indicate an aggressiveness for capital, with SCML preparing to deepen its market acquisition and look to new avenues for business. SCML stated publicly on April 24 of 2025 said that they will undertake expansion in overseas markets. In the announcement, they further stated that this move is strategically done with an aim to improve the services offered and broaden the service base internationally. However, the said expansion is still subject alongside various other regulatory approvals, to those from Reserve Bank of India (RBI).

"SCML is pleased to announce exploring international markets for the aim of improving the company's broad financial service portfolio and increasing its foothold Internationally" The statement from the company claimed.

The company's performance has been mixed from a financial perspective. SCML incurred a net loss of Rs 45.10 crore for Q3FY25, up significantly from the Rs 0.70 crore loss in Q2FY25. Despite sinking into further losses, net sales for SCML did grow from Rs 9.84 crore to Rs 20.28 crore as a result of the company's increased sales efforts during the quarter, marking an increase of 106% in net sales. For the nine months ending FY25, SCML reported a total net sale of Rs 38.16 crore, paired with an overall loss of Rs 44.05 crore.

Stock returns for SCML recorded in the past three to five years make it one of the multibaggers for investors. Cutting short the long-term gains would be quite tricky when tracking SCML exhibits a noted 173% CAGR in net profits over the last five years. Stock returns have been astounding as well, with 430% returns over three years and 960% over five. But the short-term forecast on the share price is not bright. Down 2.44% on Tuesday, closing at Rs 0.40, the share price has now dipped 20% over the past month.

Standard Capital Markets, which was incorporated in 1987 and has an RBI registration, provides a diverse array of services, including lending, investment advisory, insurance brokerage, arbitration, and legal services. Its subsidiary, Standard Capital Advisors Ltd, provides merchant banking services.

SCML funding, as noted above, is part of the corporate strategy to enhance operational capabilities alongside fortifying the capital structure and supporting future expansion initiatives.