Penny stock below Re 1 jumps 5% after ₹27 crore fundraise move

Shares of Standard Capital Markets, a penny stock trading below Re 1, hit the 5 percent upper circuit at ₹0.90 after the company announced a fundraise of ₹27 crore.

The company, in an exchange filing, stated that its Board of Directors approved the allotment of 2,700 unrated, unlisted, secured Non-Convertible Debentures (NCDs) on a private placement basis. These NCDs, each carrying a face value of ₹1,00,000, amount to a total issuance worth ₹27 crore.

The move aligns with previous announcements made on multiple occasions, including October 24 and 30, November 12, December 20, and January 15, 17, 20, and 31. The fundraising is expected to strengthen the company’s financial position and support its operational activities.

Earlier, Standard Capital Markets also secured funding through the issuance of non-convertible debentures (NCDs). At its Board meeting on January 20, 2025, the company approved the allocation of 4,400 unrated, unlisted, secured NCDs with a face value of ₹1,00,000 each, totaling ₹44 crore. In a separate meeting on January 17, 2025, the Board had authorized the issuance of 4,500 similar NCDs, aggregating ₹45 crore, on a private placement basis.

Additionally, Standard Capital Markets informed that its board will meet on February 6 to consider and approve the unaudited financial results for the quarter and nine months ending December 31, 2024. Investors will keenly watch these results to gauge the company’s financial health.

Education Loans

Standard Capital Markets also announced that it had successfully provided educational loans to more than 500 new students across the country in the ongoing fiscal year. The company emphasized its commitment to making education accessible for deserving students, ensuring financial constraints do not hinder academic aspirations.

The Managing Director of Standard Capital Markets, Ram Gopal Jindal, highlighted the significance of the initiative, stating, “We are thrilled to have supported over 500 students in their educational journeys over the past nine months. Education is the foundation for personal and professional growth, and we remain dedicated to providing financial assistance to students from diverse backgrounds.”

Jindal further noted the challenges students often face in securing funding for higher education. “Through our education loan offerings, we are not only providing financial support but also instilling confidence in students to pursue their academic ambitions and build a brighter future,” he added.

Stock Performance and Market Trend

Despite the recent surge, the penny stock has remained under pressure over the past year. It has shed nearly 69 percent of its value over the last 12 months. However, it has managed to recover 6 percent in the first three trading sessions of February, following four consecutive months of losses. The stock declined 11.5 percent in January 2025, 3 percent in December 2024, 12 percent in November, and 32 percent in October.

Currently, Standard Capital Markets’ stock is over 74 percent below its 52-week high of ₹3.52, recorded in February 2024. However, it has rebounded 11 percent from its 52-week low of ₹0.81, which it hit in January 2025.

Financial Performance

On the financial front, Standard Capital Markets reported a net loss of ₹0.51 crore in the quarter ending September 2024, a contrast to the ₹2.31 crore net profit recorded in the corresponding quarter of the previous year. However, revenue for the September 2024 quarter surged by 71.33 percent year-on-year to ₹9.68 crore, compared to ₹5.65 crore in the September 2023 quarter.

Company Overview

Standard Capital Markets Ltd., an NBFC established in 1987 and registered with the Reserve Bank of India (RBI), provides a broad range of financial services beyond conventional banking. The company specializes in advisory services, arbitration, due diligence, legal assistance, and licensing support. To further expand its financial offerings, the company operates a wholly owned subsidiary, Standard Capital Advisors Limited, focusing on merchant banking activities.