Penny Stock Under Rs 1 Issues Rs 5 Billion NCDs; Is The Stock Under Your Ownership?

On December 17, 2024, Standard Capital Markets, a microcap firm in the finance and non-banking financial company (NBFC) industry, fell to a new 52-week low of Rs. 0.96. This followed the announcement on Tuesday by Standard Capital Markets Limited, a prominent Non-Banking Financial Company (NBFC), that it had successfully issued Rs 5 billion in Non-Convertible Debentures (NCDs) to bolster its capital structure and fund its expansion plans.

The firm has effectively obtained and strategically used Rs 1.3 billion of the total money to improve and grow its operations. The objectives of this investment are to boost capacity, improve operational efficiency, and aid in the company's ongoing expansion. The company plans to use the remaining funds from this offering for a number of strategic objectives, such as working capital requirements, additional expansion, and the reduction of current debts.

Commenting on the issuance of NCDs, the 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."

The firm will be positioned for long-term development, innovation, and increased shareholder value thanks to this capital, according to Standard Capital Markets Limited.
The Board approved the distribution of 6000 unrated, unlisted, secured NCDs last month, totalling Rs 60 Cr, with face values of Rs 1,00,000 each and issue prices of Rs 1,00,000 each. The company's Board of Directors approved the private placement of 7000 unrated, unlisted, secured NCDs having a face value of Rs. 1,00,000 each at an issue price of Rs. 1,00,000 each, for a total of Rs 70,00,00,000 at its meeting on October 30, 2024.

At its October 24, 2024, meeting, the Standard Capital Markets Limited Board of Directors approved the issuance of up to 50,000 Secured, Unlisted, Unrated, Redeemable Non-convertible Debentures (NCDs) with a face value of Rs 1,00,000 each, for a total of Rs 500,00,00,000/-in one or more tranches on a Private Placement basis.

In terms of financial matters, Standard Capital Markets recorded a net loss of Rs 0.51 crore for the quarter that ended in September 2024, compared to a net profit of Rs 2.31 crore for the quarter that ended in September 2023. Compared to Q2FY24, which ended in September 2023, when sales were Rs 5.65 crore, sales in Q2FY25 increased 71.33% to Rs 9.68 crore.