Multibagger penny stock under Re 1: Board considered and approved the allotment of 5000 unrated, unlisted, secured NCDs

The stock gave multibagger returns of 425 per cent in 3 years and 950 per cent in 5 years.

Standard Capital Markets Ltd (SCML), an RBI-registered Non-Banking Financial Company, inform you that the Board of Directors of the company by circulation held today, i.e. Friday, May 02, 2025, has inter-alia, considered and approved the allotment of 5000 unrated, unlisted, secured NCDs, of face value of Rs 1,00,000 each at an issue price of Rs 1,00,000 each aggregating to Rs 50,00,00,000 (Indian Rupees Fifty Crores Only) on Private Placement basis in terms of Private placement cum application letter.

The company is set to issue Secured, Unlisted, Unrated, Redeemable Non-convertible Debentures (NCDs) via private placement, aiming to raise up to Rs 900 crore. This issuance is structured into five distinct series, each with a specific size ranging from Rs 130 crore to Rs 250 crore, to meet varied business needs. These NCDs, not intended for stock exchange listing, offer tenors of 36, 48 or 60 months for Series I, with maturity dates on May 30 of 2028, 2029 or 2030, whichever comes first. Investors across all series will receive a 10 per cent Internal Rate of Return (IRR) as a bullet payment upon maturity, secured by a charge over SCML's book receivables in favour of a Debenture Trustee; notably, these instruments do not carry any special rights, and a payment delay exceeding three months will attract an additional 2 per cent interest on the outstanding amount.

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 73 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 425 per cent in 3 years and 950 per cent in 5 years.

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