Penny stock under Re 1: NBFC to foray into AIF biz with ₹50 crore initial investment

Penny stock under Re 1: Standard Capital Markets Limited announced on Saturday, March 8, that it conducted its board meeting. The members decided that the non-banking financial company (NBFC) would foray into the alternate investment fund (AIF) business with an initial investment of ₹50 crore. 

The NBFC's wholly-owned subsidiary, Standard Capital Advisors Ltd, will be the AIF's investment manager, looking after the assets and investments of the AIF fund business. In addition, the NBFC's board made a slew of other decisions.

"….The company's Board of Directors, at their meeting held today, i.e., March 8, 2025, have, inter alia, considered and approved the following. The company to sponsor AIF -Category III in the name of ‘Standard Global Opportunities Fund’ or any other name as approved by the regulator and in this regard:

Approved the proposal to act as a Sponsor & settler to the proposed Category III - AIF and committed the initial contribution of up to ₹50.00 crore, subject to the approval of SEBI. The company to manage assets and investment of an AIF as approved by the regulator and in this regard:

Approved the proposal that the wholly-owned Subsidiary of the company 'Standard Capital Advisors Ltd' act as the Investment Manager to the said Alternate Investment Fund and manage the Assets and Investment of the Alternate Investment Fund," said the NBFC in a regulatory filing to the stock exchanges.

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According to Standard Capital Markets, the investment aligns with the company's strategic focus on external financial investments that aim to drive value creation over the medium to long term. “The strategic investments enhance growth and sustainability of the company for long-term success.”

Standard Capital to acquire 100% stake in US Financial & Investment

In addition to the above development, the NBFC's board has approved the acquisition of a 100 per cent stake in US Financial & Investment Ltd, a Hong Kong company. According to the NBFC's stock exchange filing, US Financial & Investment Ltd is incorporated and domiciled in Hong Kong.

Its registered office and principal place of business is Flat A, 7lF, Tak Lee Commercial Building, ll3-ll7 Wan Chai Road, Wan Chai, Hong Kong. According to the NBFC, the company holds a valid money lender license in Hong Kong and is not subject to any regulatory actions, suspensions, or revocations.

“This acquisition aligns perfectly with Standard Capital's strategic vision of becoming a leader in the NBFC sector. By integrating US financial expertise and resources, Standard Capital is positioned to enhance its capabilities, broaden its service offerings, and provide increased value to its clients on a global scale,” said Standard Capital Markets in its exchange filing.

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The indicative time period for the completion of the acquisition is on or before December 2025. The investment in securities is made for cash consideration. The cost of acquisition, or the price at which the shares are acquired, is 1,000,000 at $6.00 per share each. Through this acquisition, the company will have a 100 per cent stake in US Financial & Investment Limited.

Standard Capital to incorporate a wholly-owned subsidiary

The NBFC's board approved the incorporation of a wholly owned subsidiary, a DFSA Category 2 Private Company, in Dubai International Financial Center, Dubai. The proposed subsidiary will be named Standard Global Finance or any other name approved by the regulator, and the subsidiary will provide secured and unsecured lending, including trade finance, to HNIs and corporates. 

The firm will provide credit financial services and deal in investments as a Principal. Initially, the company plans to infuse up to ₹100 crore in tranches.

Standard Capital's preferential issue of shares

Standard Capital will issue equity shares via a preferential issue of 72,45,74,641 shares of face value of Re. 1 each of the company to persons belonging to the Non-Promoter Category, on a preferential basis, upon conversion of loan, at an issue price of Rs. 1.30 per Equity Shares, under the provisions of SEBI.

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Penny stock under Re 1: Standard Capital Markets Share Price Trend

On Friday, shares of Standard Capital Markets settled 3.03 per cent higher at ₹0.68 apiece on the BSE. The penny stock has nosedived 19.05 per cent in one month, 55.26 per cent in six months, 30.61 per cent year-to-date (YTD), and 70.18 per cent in one year. The NBFC commands a market cap of ₹117.64 crore.

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