300% return in one year! Multibagger penny stock below Re 1 issues NCDs worth ₹500 crore

Penny stock: Standard Capital Markets, a non-banking financial company (NBFC), announced the issuance of non-convertible debentures (NCDs) worth ₹500 crore. This move aims to bolster the company’s capital base and propel its growth trajectory.

Out of ₹500 crore worth of NCDs, the company said it has successfully raised and strategically deployed ₹130 crore towards enhancing and expanding the company's operations.

Following this development, Standard Capital Markets share price was trading in the green, up 1.04 per cent, at Re 0.97, on December 18 at 10:23 am on the BSE. The micro-cap company has a market capitalisation of ₹167.81 crore. 

Standard Capital Markets share price is trading over 70 per cent below its 52-week high of ₹3.52. However, the penny stock has delivered an exceptional 300 per cent return in a year.

Commenting on the NCD issue, the company’s management stated, “The successful issuance of these NCDs is a testament to the strong investor confidence in our business model and growth prospects. The deployment of ₹1.3 billion towards operations is part of our ongoing commitment to enhancing operational excellence and strengthening our market position. We remain focused on delivering long-term value for our shareholders and customers.”

The remaining proceeds from the issuance will be directed toward strategic initiatives, including further expansion, addressing working capital needs, and reducing existing liabilities, the company's exchange filing stated.

Standard Capital Markets financial result

Standard Capital Markets declared its Q2 results on 14 November, 2024. The standalone revenue from operations increased by 71% year-over-year (YoY) to ₹968.15 lakhs, however, it posted a loss of ₹51.39 lakhs as against a profit of 230.52 lakhs in the same quarter last year.

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