NBFC Stock Below Rs 5 Standard Capital Announces Allotment of 26 Cr Equity Shares

On Tuesday, during the volatile trading of the stock market, the shares of Standard Capital Markets Limited rose by two per cent and were trading at the level of Rs 1.59. The 52-week high of Standard Capital Market shares is Rs 3.52 while the 52-week low is Rs 1.15.

The Board of Directors of Standard Capital Market has approved several steps as per the listing rules of SEBI. The company has approved the allotment of 26 crore equity shares. These shares with Rs. 1 face value are being issued at the rate of Rs 2.75 per share. This allotment is being given on the basis of converting the existing secured loan into equity which amounts to about Rs 71.50 crore. This allotment has been made to two investors of the non-promoter category. After this, the paid-up equity share capital of the company has become Rs 173 crore.

Apart from the allotment of equity, the board of Standard Capital Markets has also approved increasing shareholding in its wholly-owned insurance company Standard Insurance Broking Limited. Standard Capital Markets Limited currently has a 75% stake in the subsidiary insurance company, which has now increased to 100%. This will help the company in the operations of Standard Insurance Broking Limited. Saloni Swasthya was established in 1987.
Standard Capital Markets, which gives the gift of bonus shares and stock split to the stock market investors, has informed the stock market that it has taken full control of the insurance subsidiary by converting the loan into shares. In the last 3 years, the shares of Standard Capital Market have made the investors rich by giving a bumper return of 3875 per cent from the low level of four paise to the level of Rs 1.59.

Recently, Standard Capital Markets announced the fourth quarter result (Q4 FY2024). The company said that its standalone net profit in the January-March quarter increased by 57 per cent YoY to Rs 2.51 crore. The company reported a net profit of Rs 1.59 crore in the corresponding quarter a year ago. The total revenue from operations in the last quarter of FY2024 came in at Rs 10.69 crore, up more than 60 per cent from Rs 6.33 crore reported in the March 2023 quarter. The total income in the reporting quarter nearly doubled to Rs 7.04 crore.

For the full FY2024, the NBFC reported a more than threefold jump in net profit at Rs 10.7 crore as against Rs 2.22 crore reported in FY2023. The firm's total assets stood at Rs 428.12 crore as of March 31, 2024.

Earlier, the company partnered with a leading fintech company to provide educational loans to individuals seeking higher education. The collaboration, it had said, will aim to make education more accessible and affordable for students, empowering them to pursue their academic goals. The loans will cover tuition fees, living expenses and other educational costs.

Standard Capital Markets Limited is an RBI-registered NBFC company. The company is engaged in activities such as Financial Advisory, Arbitration & Mediation, Due Diligence, Commercial Contract Services, and Litigation Assistance.