This Penny Stock Under ₹1 Is Getting Attention After Raising ₹56 Crore

make this written in very layman language and total human like written in very simple way

One of the cheapest stocks on the market — priced at less than ₹1 — has suddenly caught everyone’s attention. The reason? The company just raised ₹56 crore by borrowing money through something called NCDs. Since the announcement, more and more people have started looking into this stock, and it even hit its upper circuit in the market.

What’s Going On?

The company in the spotlight is Standard Capital Markets Limited, a finance-related business that helps with things like investment advice and financial services. It raised ₹56 crore by issuing Non-Convertible Debentures (NCDs) — that’s just a fancy name for a type of loan where the company agrees to pay interest to lenders but won’t turn the loan into shares later.

Each of these NCDs was worth ₹1,00,000, and they sold 5,600 of them to raise the full amount. This isn’t stock — it’s more like borrowing money from investors with a promise to pay them back with interest over time.

This Penny Stock Under ₹1 Is Getting Attention After Raising ₹56 Crore

Why It Matters

For a small company with such a low share price (under ₹1), raising ₹56 crore is a big deal. It gives them cash to grow, improve their business, pay off some of their old debts, or invest in new opportunities.

Because this type of news shows financial strength and future planning, many investors started buying the stock. As a result, its price jumped and hit the upper circuit, which means it rose as much as the exchange allows for one day and no further trading could happen.

What Is a Penny Stock?

A penny stock is just a name for a stock that’s trading at a very low price — often below ₹10, and sometimes even below ₹1, like this one. These stocks usually belong to small companies and can go up or down very fast. They are risky, but also tempting for people hoping to make big gains with a small investment.

Standard Capital Markets’ stock has been under ₹1 since the company did a stock split and bonus issue in December 2023. This basically increased the number of shares in the market and lowered the price per share, making it more affordable for small investors.

A Bit About the Company

Standard Capital Markets isn’t new. It was started in 1987 and is registered with the Reserve Bank of India as a Non-Banking Financial Company (NBFC). That means it provides finance-related services, but it’s not a bank.

The company helps with things like investment advice, company analysis, and legal support in finance matters. After this ₹56 crore fundraise, they plan to use the money for expanding their business, managing day-to-day costs, and paying off debts.

What’s Next?

The company’s management says the fact that investors were ready to lend them ₹56 crore is a big sign of trust. They believe this money will help them grow faster and run things more smoothly in the months ahead.

Whether this penny stock keeps gaining or not, it’s definitely on people’s radar now.

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