Standard Capital Markets Gives Green Light To Rs 15 Crore NCD Issuance For Growth Expansion

Standard Capital Markets Limited, which is a registered Non-Banking Finance Company (NBFC), informed on 2nd November Mr its Board of Directors has authorized the issue of Non-Convertible Debentures to the tune of Rs 15 crore by privately placing such NCDs.
In a filing to BSE, the company said, "The board of directors of the company, in its meeting held on December 20, approved the issuance of an additional 1,500 unsecured and unlisted secured NCDs of Rs One Lac each aggregating to Rs 15,00,00,000 on private placement basis."

This is not the first time that Standard Capital Markets has turned to the debt market, and it is also not the first time that the company has used unsecured redeemable non-convertible debentures for this purpose, the last one having been issued last year. The raised capital will be employed to increase the operational efficiency, and working capital gaps, and reduce the liabilities of the company ensuring its growth৉.

On Friday, shares of Standard Capital Markets rose by one cent, changing hands at Rs 1.03 from a previous closing of Rs 1.02. Once trading at a mere Rs 0.6, the stock has climbed 1633% in the past three years to sit at a price of Rs 1.04 and has still reported continuous investor interest. The firm has a 52-week low priced at Rs 95 while its 52-week high stands at Rs 3.52, boasting a market capitalization of Rs 178 crores.
More so, impressive profitability growth has also been reported by the firm, with them reporting a compounded annual growth rate of 173% over a span of five years. The firm is splitting its shares, which would now be offered as a bonus of a ratio of 2:1. The split is set to bring the par value of the shares down from Rs 10 yuan to Re 1, which took place on December 29, 2023.

As per the shareholding pattern of the firm in September 2024, the committee reports that promoters own 14.86% of the company while the remaining 85.14% lies in the public's hands.

Earlier this week, the company was also able to announce the allotments of the Non-Convertible Debentures of Rs.500 crore which set a landmark principle target in growing the business. Out of the total, Rs 130 crore has been set aside for improving the operating capacity and for increasing the efficiencies whilst the rest will be directed to increasing the market, increasing the working capital and repaying the debts.

Standard Capital Markets is a diversified non-banking financial institution(NBFC) which is registered with the Reserve Bank of India and was established in the year 1987. The company has several offers such as advisory on negotiations and project identification, arbitration, mediation, due diligence and commercial contract services. It also encompasses litigation support, and licensing, company registration, import/export license and others.

In order to expand its diversification, the company established its fully owned subsidiary Standard Capital Advisors Limited which deals with merchant banking. With this impressive track record and such a wide range of services, Standard Capital Markets strengthens its position as a key player in the area of financial services.