NBFC Penny Stock Below ₹1 in the Spotlight After Raising ₹56 Crore Through NCDs
A tiny stock that trades for less than ₹1 has suddenly caught everyone’s attention. The company behind it, Standard Capital Markets Ltd — a non-banking financial company (NBFC) — recently made a big move that’s turning heads in the stock market world. Despite its low share price, the stock has given eye-popping returns over the past few years. Now, with a fresh fundraise in place, people are watching it even more closely.
What Did the Company Do?
On Monday, the company announced that it has raised ₹56 crore by issuing Non-Convertible Debentures (NCDs). These are a type of loan instrument where investors lend money to the company in exchange for fixed interest, without becoming shareholders.
In simple terms, Standard Capital borrowed money from private investors to support its business. It issued 5,600 NCDs, each worth ₹1 lakh. The company will use this money to grow its business and improve its day-to-day operations.
Why This Matters
Standard Capital Markets is what the market calls a “penny stock” — its share price is under ₹1. Normally, these stocks are seen as risky, but this one has shown surprising strength.
In fact, the stock has delivered a jaw-dropping return of over 900% in the last five years. Even though it’s priced very low per share, people who invested earlier have made massive gains.
This isn’t the first time the company has taken bold steps. In December 2023, it split its shares — turning 1 share into 10 — and also gave 2 bonus shares for every 1 held. This made the stock even more affordable and attracted small investors.
What Will the Money Be Used For?
The ₹56 crore raised will go towards several things:
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Boosting the company’s daily operations
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Expanding its business reach
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Reducing some of its existing debt
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Meeting general working capital needs
So basically, the company is using the funds to grow and run better — and if things go well, this could benefit investors too.
Why Is This Stock Being Talked About?
There are two big reasons:
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Massive past returns: Even though it’s a penny stock, it has delivered returns that many large-cap stocks can only dream of.
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Fresh fundraising: Raising ₹56 crore through NCDs is a sign that the company has plans to grow further. That creates buzz in the market.
However, investors should still be cautious. Penny stocks can move up fast — but they can fall just as quickly. It’s always smart to look beyond just the price and understand what’s really going on in the business.
