Penny Stock Under ₹1 in Focus After ₹79 Crore Fundraise via NCDs
Standard Capital Markets, a penny stock trading under ₹1, is expected to remain in the spotlight during Wednesday’s session following its recent approval to raise ₹79 crore through Non-Convertible Debentures (NCDs) on a private placement basis. The move is part of a broader capital mobilisation effort by the company, which also includes a ₹121 crore fundraising approved earlier this week.
NCD Allotment Boosts Funding Activity
In an exchange filing dated May 6, 2025, Standard Capital Markets confirmed the allotment of 7,900 secured, unrated, and unlisted NCDs.
- Each NCD carries a face value of ₹1,00,000, amounting to a total raise of ₹79 crore.
- The issuance was approved through a board resolution by circulation, which is often used to expedite time-sensitive corporate decisions.
This capital raise reflects the company’s aggressive financial planning despite being a low-value stock, currently priced at just ₹0.40 per share.
Stock Performance: A Volatile Trend
Standard Capital Markets’ share price closed 2.44% lower at ₹0.40 on Tuesday, continuing its declining trend over the past month.
- The stock has lost over 20.41% in the last 30 days, highlighting heightened investor caution despite the fresh capital infusion.
- Market sentiment remains cautious around penny stocks, which often carry higher risk due to low liquidity and price sensitivity.
Yet, fundraises of this scale are uncommon for sub-₹1 stocks, which could attract speculative interest in the near term.
₹121 Crore Raised Earlier This Week
This recent ₹79 crore is not Standard Capital’s only fundraising activity in May. On May 5, 2025, the company allotted a total of 12,100 secured NCDs, valued at ₹1,00,000 each.
- The first tranche involved 10,000 NCDs for ₹100 crore.
- A second allotment of 2,100 NCDs followed, raising another ₹21 crore, as per separate exchange disclosures.
Together, these two rounds raised ₹121 crore, bringing the company’s total NCD-based fundraising this week to a substantial ₹200 crore.
Strategic Expansion Beyond India
Standard Capital Markets, a registered Non-Banking Financial Company (NBFC) under RBI, is also eyeing global opportunities.
- In a statement released on April 24, 2025, the company shared its intention to expand into international markets as part of a wider plan to diversify its financial services.
- The expansion will be subject to approvals from regulatory authorities, including the Reserve Bank of India.
This proposed global outreach suggests a strategic shift from its core domestic operations, possibly aimed at tapping new revenue streams and improving brand visibility.
What Investors Should Watch
Despite being a low-priced stock, Standard Capital’s series of fundraises through NCDs indicate a clear push toward growth and balance sheet strengthening.
- However, the consistent decline in stock price implies that market participants may be awaiting more clarity on utilisation of funds and execution of the international strategy.
- Investors should also monitor any regulatory developments regarding the company’s expansion plans, as global ambitions could alter its risk and reward profile.
