Penny stock below Re 1 hits upper circuit after ₹56 crore NCD fundraise
Shares of Standard Capital Markets, a penny stock, surged to hit the 5 percent upper circuit at ₹0.88 on Thursday, January 16. The sharp rise followed the company’s announcement of completing a ₹56 crore fundraise via Non-Convertible Debentures (NCDs).
Penny stock below Re 1: Shares of Standard Capital Markets, a penny stock, surged to hit the 5 percent upper circuit at ₹0.88 on Thursday, January 16. The sharp rise followed the company’s announcement of completing a ₹56 crore fundraise via Non-Convertible Debentures (NCDs).
NCD Fundraise Details
In an exchange filing, the company stated, “The Board of Directors of the Company, in its meeting held on January 15, 2025, approved the allotment of 5,600 secured, unrated, unlisted NCDs at a face value of ₹1,00,000 each. The issue, conducted on a private placement basis, aggregates to ₹56 crore.”
This fundraise follows an earlier allotment of 1,500 NCDs in December 2024, amounting to ₹15 crore. The back-to-back fundraises highlight the company’s efforts to strengthen its financial position amid a challenging market environment.
Company Background and Recent Developments
Standard Capital Markets, established in 1987 and registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India, provides a wide range of financial services. These include advisory services, arbitration, due diligence, litigation support, and assistance with licensing and commercial contracts.
In December 2023, the company implemented a stock split and issued bonus shares, which adjusted the stock price to below Re 1. Despite these measures, the company has faced significant headwinds in recent months.
Financial Performance
Standard Capital Markets reported a net loss of ₹0.51 crore in the September 2024 quarter, compared to a net profit of ₹2.31 crore in the same quarter of the previous year. However, sales rose 71.33 percent year-on-year to ₹9.68 crore during the same period, up from ₹5.65 crore.
Stock Performance
The penny stock has been on a declining trend, losing nearly 75 percent of its value over the past year. In January 2025 alone, the stock has dropped over 8 percent, marking its fourth consecutive month of losses.
The ₹56 crore NCD fundraise signals the company’s intent to secure financial stability and strengthen its operations. However, with ongoing losses and a challenging stock performance, Standard Capital Markets faces significant hurdles in restoring investor confidence.
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