Rs 1 Penny Stock Secures Rs 100 Crore via NCD Allotment -- Board Gives Green Light

On February 11, 2025, Standard Capital Markets' Board of Directors approved the issuance of 10,000 unrated, unlisted, secured NCDs on a private placement basis. Each NCD carries a face value of Rs 1,00,000, aggregating a total issue size of Rs 100 crore.

The allotment followed multiple prior intimations regarding the company's fundraising plans through NCDs. Notifications to stock exchanges on key dates, including October 24 ,2024, January 31 ,2025, and February 4, 2025, highlighted its preparation for this issuance.

Financial Performance: Revenue Surge but Mounting Losses

Despite raising funds, Standard Capital Markets reported mixed financial results for the December 2024 quarter.

• Revenue from operations stood at Rs 23.58 crore, reflecting a 139 per cent jump compared to Rs 9.84 crore in the previous quarter (July to September 2024).
• The company, however, posted a sharp net loss of Rs 45.07 crore, significantly up from the Rs 0.67 crore loss reported in the preceding quarter.
• Rising expenses were identified as the primary reason for the steep losses.

Stock Performance: Minimal Fluctuations Amid Market Weakness

On February 11, the company's share price opened flat at Rs 0.84 on the Bombay Stock Exchange (BSE) before trading within a narrow range, with intraday highs of Rs 0.84 and lows of Rs 0.80.

Strategic Fundraising to Tackle Losses

The NCD issue underscores the company’s efforts to manage its financial liabilities and explore growth avenues. Industry analysts view the move as a strategic decision amid operational challenges.

Standard Capital Markets remains focused on stabilising its financial position as it navigates a challenging environment with rising operational expenses. Investors will closely watch its next fiscal moves as the firm seeks to convert recent capital infusions into tangible growth.

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