2:1 Bonus Share & 10:1 Stock Split: Multibagger penny stock below Rs 2 likely to announce special dividend, preferential issue, rights issue!

From Rs 0.04 to Rs 1.91 per cent, the stock gave multibagger returns of 4,675 per cent in 3 years.

Today, shares of Standard Capital Markets Limited plunged 1.04 per cent to Rs 1.91 per share from its previous closing of Rs 1.93 with an intraday high of Rs 1.93 and an intraday low of Rs 1.86. The stock’s 52-week is Rs 3.52 and its 52-week low is Rs 1.15.

The Board of Directors of Standard Capital Markets Limited will hold a meeting on April 30, 2024. The Board will consider several important matters, including a proposal to declare a special dividend as an interim dividend for the financial year 2023-24. This special dividend is intended as a token of appreciation for the unwavering support and trust of the Company's valued shareholders, whose commitment has been instrumental in the Company's growth and ability to seize opportunities. The Company remains dedicated to driving sustainable growth and creating long-term value for all stakeholders.

Additionally, in accordance with Regulation 42 of SEBI Listing Regulations 2015, the Board will determine the record date for ascertaining shareholder entitlement to the interim dividend, if declared. Finally, the Board will also consider the issuance of one or more financial instruments, including equity shares or convertible securities, which could be issued through a preferential issue, rights issue, or any other mode deemed appropriate.

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Established in 1987, Standard Capital Markets Ltd is a NBFC company registered with the RBI. They offer a variety of financial services including advisory (negotiations, project identification etc.), arbitration & mediation, due diligence, commercial contract services (drafting agreements etc.), litigation assistance, and even licensing (company incorporation, import/export licenses etc.). With a strong track record and recent 100 per cent CAGR profit growth over the last 5 years, they've established a wholly-owned subsidiary, Standard Capital Advisors Limited, to expand their reach into merchant banking activities.

Earlier, the has expanded its business by fully acquiring KRV Brooms Private Limited, a manufacturer and supplier of housekeeping items like brooms, mops, and cleaning brushes. KRV Brooms, which generated a turnover of Rs 90,74,496 for the financial year ending March 31, 2023, was previously owned 99.9 per cent by Mr Ram Gopal Jindal, a promoter of SCML, making this a related party transaction. However, SCML assures the deal was conducted at fair market value and didn't require shareholder approval due to its minimal impact. By April 30, 2024, SCML is expected to finalize the acquisition by paying Rs 1 lakh for the 10,000 shares of KRV Brooms, priced at Rs 10 per share. This acquisition effectively makes KRV Brooms a wholly-owned subsidiary of SCML, marking SCML's diversification into the manufacturing and supply of housekeeping products since KRV Brooms' incorporation in India on January 18, 2022.

According to Quarterly Results, the net sales increased by 94.4 per cent to Rs 5.78 crore, operating profit increased by 243.7 per cent and net profit increased by 647.8 per cent to Rs 3.32 crore in Q3FY24 compared to Q3FY23 while the net sales increased by 272.2 per cent to Rs 16.70 crore and net profit increased by 1,203 per cent to Rs 8.20 crore in 9MFY24 compared to 9MFY23. 

In its half-yearly results (H1FY24), the net sales surged 426 per cent to Rs 10.92 crore and net profit leapt 2,560 per cent to Rs 4.90 crore, year-over-year. The impressive trend extended to FY23, where net sales jumped 2,093 per cent to Rs 8.05 crore and net profit galloped 2,584 per cent to Rs 2.23 crore, compared to FY22.

The shares of the company undergo a 2:1 bonus share and stock split from Rs 10 to Rs 1 on the ex-date i.e., December 29, 2023. According to the shareholding pattern, promoters of the company only own a 17.74 per cent stake while an 82.26 per cent stake is owned by the public. From Rs 0.04 to Rs 1.91 per cent, the stock gave multibagger returns of 4,675 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.