Multibagger Penny Below Re 1: Company Allotted Total 25,000 NCDs Worth Rs 250 Crore; Details Inside!
The stock gave multibagger returns of 375 per cent in 3 years and 850 per cent in 5 years.
Standard Capital Markets Ltd (SCML), a Non-Banking Financial Company registered with the RBI, has announced the allotment of a total of 25,000 Non-Convertible Debentures (NCDs) valued at Rs 250 crore. This allotment was approved by the company's Board of Directors and encompasses four distinct tranches, all conducted on a private placement basis. These NCDs are unrated and unlisted, but secured, with a face value and issue price of Rs 1,00,000 each.
The individual allotments include: Allotment 1 comprising 5,000 NCDs amounting to Rs 50 crore; Allotment 2 consisting of 10,000 NCDs totalling Rs 100 crore; Allotment 3 involving 2,100 NCDs valued at Rs 21 crore; and finally, Allotment 4 with 7,900 NCDs aggregating to Rs 79 crore. Each of these allotments was carried out under the terms outlined in the respective private placement cum application letters.
What are Non-Convertible Debentures (NCDs)?
Non-Convertible Debentures (NCDs) are debt instruments issued by companies to raise funds, similar to bonds. However, unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company at a later stage. They offer a fixed rate of return over a specific tenure and are a way for investors to lend money to a company in exchange for periodic interest payments and the return of the principal amount on maturity. NCDs can be secured or unsecured, and their risk and return profiles vary accordingly. They are typically listed on stock exchanges, providing investors with liquidity.
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About the Company
Established in 1987 and registered with the RBI, Standard Capital Markets Ltd (SCML) is a diversified NBFC providing financial services like lending, investment advisory, insurance broking, arbitration and legal assistance; its subsidiary, Standard Capital Advisors Limited, focuses on merchant banking.
According to Quarterly Results, the net sales increased by 106 per cent to Rs 20.28 crore in Q3FY25 compared to net sales of Rs 9.84 crore in Q2FY25. The company reported a net loss of Rs 45.10 crore in Q3FY25 compared to a net loss of Rs 0.70 crore in Q2FY25. The company reported net sales of Rs 38.16 crore and a net loss of Rs 44.05 crore in 9MFY25 while the company reported net sales of Rs 27.39 crore and a net loss of Rs 10.71 crore in FY24.
The company has a market cap of Rs 67 crore and has delivered good profit growth of 173 per cent CAGR over the last 5 years. According to the shareholding pattern, promoters of the company only own a 13.89 per cent stake while the public owns an 86.11 per cent stake as of March 2025. The stock gave multibagger returns of 375 per cent in 3 years and 850 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.