NBFC Penny Stock Below Rs 5 Okays Rs 401.50 Cr NCDs In One Or More Tranches

Standard Capital Markets Ltd is a micro-cap NBFC company which is in focus after declaring Non-convertible debentures (NCDs) in the form of a public issue to accumulate long-term capital appreciation. On Wednesday the shares of penny stock below Rs 5 Standard Capital Markets were trading 1.20% higher at Rs 1.68 apiece after the Board of Directors issued NCDs of up to Rs 401.50 Cr on a private placement basis.

"We wish to inform you that the Board of Directors of the Standard Capital Markets Limited in its Meeting held today i.e. July 02nd 2024 at 5:00 P.M. and Concluded at 07:30 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 10,00,000 (Indian Rupees Ten lakh) each, aggregating up to an amount of INR 4,01,50,00,000/- (Indian Rupees Four Hundred One Crores Fifty Lakhs Only) in one or more tranches on a Private Placement basis," said Standard Capital Markets in a regulatory filing.

The tenure of the issue is 84 months and/or 31st March 2031 whichever is earlier while 31st March 2031 will serve as the date of maturity. Standard Capital Markets NCDs come with a coupon rate of 10% and bullet payment of interest at the end of the tenor of the NCD will act as the schedule of payment of coupon/interest and principal.

Recently on 20th June, Standard Insurance Broking Limited was incorporated as a new wholly-owned subsidiary of the company under the Companies Act, 2013 with a share capital of Rs. 100,00,000.

The company's Board of Directors met earlier this month on June 10, 2024, and decided to approve the allotment of 26,00,00,000 equity shares with a face value of Re. 1 each. These shares will be used to convert outstanding unsecured loans, and the issue price is Rs. 2.75 per equity share (plus a premium of Rs. 1.75 per share). The total amount being allotted will be Rs. 71,50,00,000/-, with preference going to Shark Suppliers Private Limited and Sunil Sales and Services Pvt Ltd.

Standard Capital Markets Ltd. was established in 1987 and is engaged in non-banking financial operations. The firm offers a variety of financial services, including loans, both secured and unsecured, to individuals and MSMEs apart from dealing in securities, including corporate shares, bonds, and stock market investment units.

The shares of Standard Capital Markets reached a 52-week-high of Rs 3.52 on (27/02/2024) and a 52-week-low of Rs 1.15 on (25/08/2023). Standard Capital Markets is among the multibagger penny stocks on Dalal Street as the scrip has surged 833.33% in just 1 year.