Penny Stock Below ₹1 Soars After ₹121 Crore NCD Allotment: A Closer Look at Standard Capital Markets

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Published on May 15, 2025

In a remarkable turn of events, Standard Capital Markets Limited (SCML), a non-banking financial company (NBFC) with shares trading below ₹1, has captured investor attention by raising ₹121 crore through the allotment of non-convertible debentures (NCDs). This strategic move has not only bolstered the company's financial standing but also led to a notable uptick in its stock performance.

Understanding the NCD Allotment(Goodreturns)

On May 5, 2025, SCML announced the successful allotment of 12,100 secured, unrated, unlisted NCDs on a private placement basis. The allotment comprised two tranches: 10,000 NCDs and 2,100 NCDs, each with a face value of ₹1,00,000, aggregating to ₹121 crore. 

This capital infusion is part of SCML's broader strategy to strengthen its financial base and explore new growth avenues, including potential international expansion.

Stock Performance: A Rollercoaster Ride

Despite trading at a modest ₹0.41 per share as of May 5, 2025, SCML's stock has demonstrated significant volatility. Over the past year, the stock has declined by 78%, and it has seen a 58% drop in 2025 alone. However, a longer-term perspective reveals a different story: the stock has delivered an impressive 925% return over the past five years, showcasing its potential as a multibagger for patient investors.(Goodreturns, Times Now Navbharat)

Financial Health and Expansion Plans(Goodreturns)

SCML's financial performance has been mixed. In the third quarter of FY25, the company reported net sales of ₹20.28 crore, marking a 106% increase from the previous quarter. However, this growth was overshadowed by a significant net loss of ₹45.10 crore, up from a loss of ₹0.70 crore in the preceding quarter. (Goodreturns)

Undeterred, SCML is setting its sights on international markets. In a filing dated April 24, 2025, the company expressed its intent to explore opportunities abroad, including establishing overseas subsidiaries and forming strategic partnerships in key global financial hubs. (Goodreturns, mint)

Corporate Actions: Stock Split and Bonus Issue(ET Now)

In December 2023, SCML undertook corporate actions to enhance shareholder value. The company executed a stock split in a 10:1 ratio and issued bonus shares in a 2:1 ratio. These measures adjusted the stock price below ₹1, making it more accessible to a broader investor base. (ET Now, EcoInvest)

Investor Considerations

While SCML's recent NCD allotment and expansion plans indicate a proactive approach to growth, investors should exercise caution. The stock's high volatility and recent financial losses underscore the importance of thorough due diligence. Potential investors should consider the company's long-term prospects, management strategies, and market conditions before making investment decisions..