Gains Of 7075% In 3 Years: This Multibagger Penny Stock Hits Upper Circuit On Subsidiary Plans

Standard Capital Markets Limited witnessed a 5% surge in its shares as they hit the upper circuit on Thursday. This upswing follows the recent approval by the non-banking financial company's (NBFC) board for the incorporation of a wholly-owned subsidiary, geared towards venturing into the domain of merchant banking.

On February 14 (Wednesday), Standard Capital Markets Ltd announced its strategic decision to extend its footprint in the financial sector by establishing a subsidiary named Standard Capital Advisors Limited. The name, however, is subject to approval by the Central Registration Centre and/or Ministry of Corporate Affairs. The authorized capital for this new venture is set at Rs 5 crores, divided into 50,00,000 equity shares of Rs 10 each.

"The wholly owned subsidiary company once incorporated will be a related party of the Standard Capital Markets Limited," declared the company in a filing with the stock exchange, underscoring the significance of this move within their corporate structure.

This development comes on the back of another major announcement by Standard Capital Markets Ltd in January, where the board of directors allotted over 98 crores fully paid-up bonus equity shares to eligible investors. The company's commitment to rewarding its stakeholders and investors has been a recurring theme, reflecting positively on its market standing.

As of 3:05 pm on Thursday, Standard Capital Markets' shares were trading at Rs 2.87 per share, showcasing a 5% gain on the Bombay Stock Exchange (BSE). This surge adds to the company's already impressive performance, with a 205% increase in the last year alone. Looking back over the past three years, the stock has registered an astounding 7075% gain, solidifying its status as a multi-bagger penny stock.

Investors and market analysts alike are closely watching Standard Capital Markets Limited, anticipating further developments and potential gains. The foray into merchant banking through the new wholly-owned subsidiary is seen as a strategic move, aligning with the company's vision for expansion and diversification.

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