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Undervalued Penny Stock Under ₹1: NBFC Shines After ₹50 Crore NCD Fundraise!

Undervalued Penny Stock Under ₹1: NBFC Shines After ₹50 Crore NCD Fundraise!

Standard Capital Markets, a small-cap non-banking financial company (NBFC), recently made headlines as it prepares to raise ₹50 crore through the issuance of non-convertible debentures (NCDs). Announced on May 2, 2025, this move signals the company’s strategy to bolster its financial position and expand its investment avenues.

Fundraising Through NCDs

In a recent regulatory filing, Standard Capital Markets disclosed that its board approved the issuance of 5,000 unrated, unlisted, secured NCDs, each with a face value of ₹1,00,000. The total issue will amount to ₹50 crore, enhancing the company’s ability to navigate the competitive financial landscape.

  • Issue details:
    • NCDs: 5,000 unrated, unlisted, secured
    • Face value: ₹1,00,000 each
    • Total amount: ₹50 crore
    • Placement method: Private placement

New Ventures in Alternate Investment Funds

In addition to the NCD issuance, Standard Capital Markets is venturing into the alternate investment fund (AIF) sector with an initial investment of ₹50 crore. Their subsidiary, Standard Capital Advisors, will act as the investment manager, overseeing the assets and investments of the new AIF business. This strategic move highlights the company’s commitment to diversifying its portfolio and tapping into growing investment opportunities.

Share Performance Trends

Despite these initiatives, the company’s stock has faced significant challenges. On May 2, 2025, shares of Standard Capital Markets closed down 8.70% at Re 0.42 on the Bombay Stock Exchange (BSE). Over the past month, the stock has plummeted 23%, and it has experienced a staggering 58% decline year-to-date and an alarming 78% drop over the past year. The current market capitalization stands at ₹72.66 crore, indicating the pressure the company faces in the market.

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Company Background and Expertise

Founded on February 19, 1987, Standard Capital Markets has deep roots in the financial sector. Established by CA. Narender K. Arora, Manohar Lal Vij, and Vijay Chaudhry, the company is managed by a team of seasoned professionals skilled in finance and administration. Their services include:

  • Lending to individuals and SMEs, with or without collateral
  • Trading in securities, shares, and bonds
  • Investment in various financial markets

Listed since March 29, 1995, the company is registered with the Reserve Bank of India (RBI) as an NBFC, receiving its registration number on March 21, 2003.

Conclusion

Standard Capital Markets is navigating a challenging financial landscape while simultaneously seeking growth opportunities through NCDs and AIFs. As the company strives to enhance its market presence, stakeholders will closely monitor its upcoming initiatives and their impact on share performance.

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