NBFC Stock Under Rs 1 Locked At 5% Upper Circuit On Allotment of NCDs of Rs 56 Cr

On Thursday the shares of Standard Capital Markets Ltd increased by 3.57% measuring Rs 0.87 per share as compared to the previous closing of Rs 0.84. As seen as being a volatile stock, Standard Capital currently trades at Rs 3.52 as the 52-week high and Rs 0.81 for the 52-week low. The company is currently providing an impressive return of 988% over the time frame of 3 years.

In other news, the Board of Directors of the company approved the issuance of five thousand six hundred secured Non-Convertible Debentures at a face value of rupees one lakh each which would translate into a cash influx of 560 million rupees. The funds will be used to improve the overall financial situation of the company. This comes hot on the heels of a previous successful fundraising round in which the company raised 5 billion rupees by issuing Non-Convertible Debentures.

Generally, for NCDs, the funds raised are meant for the purpose of achieving a particular goal. In this instance, 1.3 billion rupees are going to be allocated to improving the efficiency of the company and its operations, expanding the current capacity, and various other goals. The remainder of the funds will be used to capture new market opportunities, facilitate working capital requirements and pay off existing debt. This would be done with the aim of restructuring Standard Capital Markets to promote growth and profitability in the long run.

The company's financial performance looks quite good as it has achieved a compound annual growth rate of 173% during the last 5 years. In spite of its relatively smaller market cap of Rs 150 crores, the company has shown stability and a direction on how to create value for its stakeholders.

As of 30th September 2024, the promoters only have a 14.86% S/O stake, whereas the public shareholders own the other 85.14%. Such broad public ownership demonstrates the overwhelming confidence of investors in the company's vision and the ability to execute it.

Standard Capital Markets Ltd was incorporated in 1987 and is a Non-Banking Financial Company registered under the dominion of the Reserve Bank of India. It has successfully grown in the market by providing sufficient coverage of almost all financial needs from advisory on negotiations, and project identification to arbitration and due diligence as well as legal services on drafting commercial contracts. Apart from the above, it provides licensing services like company registration and licenses for import/export.

To improve its capabilities, Standard Capital Markets formed a fully owned subsidiary which is called Standard Capital Advisors Limited, which is more entailed in merchant banking activities. This move was taken to ensure the company met its commitment to providing more services while venturing into new financial opportunities.

In its quest for expansion, Standard Capital Markets balances its experience and fresh funds to improve productivity and venture into new opportunities. This reflects the management's prudent policies in managing the funds and the diversification of the services offered by the company.