NBFC Stock Below Rs 5 Okays Raising Funds Via NCDs After 1:10 Stock Split, 2:1 Bonus Shares

As of Thursday's closing session, Standard Capital Markets Ltd, a small-cap firm in the NBFC sector, has a market valuation of Rs 470.40 Cr. The stock ended at a 2% lower circuit level at Rs 3.20 apiece following the company's fundraising plan via NCDs.

The Board of Directors at its duly convened meeting held on Thursday, January 18, 2024 "Considered and discussed the purpose of raising funds through Non-Convertible Debentures. As part of our strategic financial planning, the company has actively engaged with various institutions to explore and facilitate the fundraising through Non-Convertible Debentures.

This decision aligns with our long-term financial goals and is aimed at optimizing our capital structure. The company has successfully approached several institutions in this regard. The Board of Directors, in compliance with the provisions of section 180(1)(c) of the Companies Act, 2013, duly approved the decision to raise funds through NCDs. This approval was obtained at the meeting held on September 28, 2023," said Standard Capital Markets in a stock exchange filing.

"The funds raised through Non-Convertible Debentures will be utilized for business expansion and general corporate purpose. This strategic move is expected to contribute significantly to our growth and expansion plans. We believe that this fundraising initiative will not only strengthen our financial position but also enhance shareholder value. We are committed to maintaining transparency and ensuring that our stakeholders are well-informed about the company's financial decisions," further stated the company in a regulatory filing.

The Board also gave Mr. Ram Gopal Jindal (DIN: 06583160) due consideration and authorised his nomination to the position of "Chairman cum Managing Director" of the company, effective January 18, 2024. Mr. Ram Gopal Jindal, who is now the Managing Director, will take over the dual post of Chairman and Managing Director as of January 18, 2024. The purpose of this strategic move is to further solidify the company's leadership and capitalise on Mr. Ram Gopal Jindal's experience.

The Board also considered and approved Ms. Chhavi Dixit (DIN: 10465851) as an 'Additional Director' in the category of Non-Executive - Independent Director' of the company with effect from January 18, 2024.

"The appointment of Independent Director have been made for a tenure of 5 (five) years with effect from January 18, 2024 in terms of Section 149 and Section 152 of the Companies Act, 2013, subject to members approval," said Standard Capital Markets in a regulatory filing.

On December 22, 2023, Standard Capital Markets Ltd was granted regulatory clearance to issue and allocate the proposed bonus shares and stock split from BSE. The planned allocation of up to 98,00,02,000 bonus equity shares of Re 1/- each, with a ratio of two new equity shares for every 1 existing equity share owned by shareholders, was authorised by the exchange.

At their meeting on November 24, Standard Capital Markets' board of directors authorised the sub-division of the company's shares. The proposal for a 1:10 stock subdivision and bonus share issue was authorised by the company's board. Friday, December 29, was the record date for the bonus issuance and stock split.