Penny Stock Under Rs 1 in Focus After It Approves Rs79 Crore Fundraise via NCDs After Recent Rs 121 Crore Issue

On Tuesday, 6 May 2025, the board of directors of Standard Capital Markets Ltd, a penny stock listed below ₹1, approved the allotment of 7,900 non-convertible debentures (NCDs) worth ₹79 crore on a private placement basis, according to an exchange filing. This fresh capital raise follows a larger issuance on 5 May, where the company allotted 12,100 NCDs totalling ₹121 crore, further underscoring its ongoing capital mobilisation efforts.

In its official filing, the company stated:“The Board of Directors… has inter alia, considered and approved the allotment of 7,900 unrated, unlisted, secured NCDs of face value ₹1,00,000 each, aggregating ₹79 crore.”

The company’s share price, which closed 2.44 per cent lower at ₹0.40 apiece on Tuesday, has dropped over 20 per cent in the past month. However, the firm remains active in seeking funds for its long-term strategic goals.

Continued Capital Mobilisation

This follows Standard Capital’s earlier announcement on Monday, where the board greenlit another round of 10,000 and 2,100 NCDs, each priced at ₹1 lakh, amounting to a total of ₹121 crore.

Strategic Expansion Plans

In late April, the non-banking financial company (NBFC), registered with the Reserve Bank of India (RBI), signalled plans to explore international expansion.

“Standard Capital Markets Limited is pleased to announce its intent to explore international markets as part of a broader strategy to expand its financial services portfolio and strengthen its global footprint. The expansion is subject to regulatory clearances including those from the RBI,” the company stated in a press release dated 24 April 2025.

The company is reportedly evaluating opportunities to establish overseas subsidiaries and enter into strategic partnerships in key global financial hubs.

Stock Outlook and Industry Context

Despite recent declines, Standard Capital has shown long-term growth, having delivered multibagger returns of over 900 per cent in five years. As a low-priced stock with high volume trading, it remains a speculative but closely watched counter in small-cap circles.

The NBFC’s aggressive funding strategy through debt instruments aligns with similar moves by small and mid-cap finance players seeking to boost liquidity amidst macroeconomic uncertainty.

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