{"id":56027,"date":"2025-05-07T16:29:05","date_gmt":"2025-05-07T10:59:05","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=56027"},"modified":"2025-07-24T15:28:00","modified_gmt":"2025-07-24T09:58:00","slug":"from-local-nbfc-to-global-contender-scmls-fundraising-pivot","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/from-local-nbfc-to-global-contender-scmls-fundraising-pivot\/","title":{"rendered":"From Local NBFC to Global Contender: SCML\u2019s Fundraising Pivot"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Introduction<\/strong><\/h2>\n\n\n\n<p>Standard Capital Markets Limited (SCML), a registered Non-Banking Financial Company (NBFC) under the Reserve Bank of India, recently made a strategic move that has turned heads across the financial sector. Often overshadowed by its sub-\u20b91 share price, SCML demonstrates that market value does not always reflect a company\u2019s underlying potential. With a fresh infusion of \u20b979 crore via non-convertible debentures (NCDs) on a private placement basis, the company is positioning itself for a more ambitious and forward-looking trajectory. (Source: <a href=\"https:\/\/www.livemint.com\/market\/stock-market-news\/penny-stock-under-1-standard-capital-markets-in-focus-after-79-crore-fundraise-through-ncds-on-private-placement-basis-11746588310033.html\" target=\"_blank\" rel=\"noopener\">LiveMint<\/a>)<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>Major Fundraising Through Private NCDs<\/strong><\/h2>\n\n\n\n<p>On May 6, 2025, SCML announced the allotment of 7,900 unrated, unlisted, secured NCDs of \u20b91 lakh each, amounting to a total of \u20b979 crore. This follows another fundraising initiative just a day prior, on May 5, where the company issued 12,100 NCDs worth \u20b9121 crore. (Source: <a href=\"https:\/\/www.livemint.com\/market\/stock-market-news\/penny-stock-under-1-standard-capital-markets-in-focus-after-79-crore-fundraise-through-ncds-on-private-placement-basis-11746588310033.html\" target=\"_blank\" rel=\"noopener\">LiveMint<\/a>)<\/p>\n\n\n\n<p>These consecutive private placements, totalling \u20b9200 crore within 48 hours, are not mere routine transactions. They indicate aggressive capital mobilisation efforts and underscore SCML\u2019s confidence in leveraging debt to fuel future operations. Even though unrated, using secured NCDs suggests the company\u2019s intent to maintain a certain level of financial discipline while attracting investor trust.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXcoLAXvDrfqkLd7D-k8sGaR0a1lUj5r0AKAW70tAvA479x1eZy3ZoZpJ58lSy0EpVQOVXEyWYJ7pUi7eCSSnxOd7-Yo7-Z1NFqmsSIFNB1MTME65d81oCMGzbysrmpLL8f0BLPWAw?key=b9Rkg_DI-y6EkUPVIWKtpw\" alt=\"\" style=\"width:526px;height:auto\" title=\"\"><figcaption class=\"wp-element-caption\"><em>Source: <\/em><a href=\"https:\/\/www.tradingview.com\/x\/mltBUEA5\/\" target=\"_blank\" rel=\"noopener\"><em>TradeView<\/em><\/a><\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>What Does This Mean for Investors?<\/strong><\/h2>\n\n\n\n<p>Traditionally, stocks trading at low nominal values have been viewed with scepticism and often dismissed in mainstream investing circles. However, SCML\u2019s recent moves challenge this perception. The ability to raise \u20b9200 crore without diluting equity shows that institutional or high-net-worth investors are willing to back the company based on its fundamentals and vision.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">Investors should note that:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company is not simply raising money but securing it through NCDs, assuming debt obligations rather than offloading equity.<\/li>\n\n\n\n<li>These are <em>secured<\/em> NCDs, indicating asset backing and an added layer of risk mitigation.<\/li>\n\n\n\n<li>Despite being unrated, the successful placement suggests confidence in the company\u2019s repayment capabilities.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>NBFCs: A Driving Force in India\u2019s Financial Sector<\/strong><\/h2>\n\n\n\n<p>SCML\u2019s progress aligns closely with the evolving role of NBFCs across India\u2019s financial landscape. A recent analysis by Mavenark Advisors highlights how rapidly NBFCs are expanding, surpassing the growth rate of the broader Indian economy. Between FY19 and FY24, NBFC credit grew at a compounded annual growth rate of 12 percent. Their assets under management (AUM) have risen dramatically from just under \u20b92 lakh crore at the turn of the millennium to approximately \u20b943 lakh crore by the end of FY24.<\/p>\n\n\n\n<p>This surge is not coincidental. NBFCs have carved out a niche by extending credit to underserved population segments, especially in rural and semi-urban India. Unlike banks, which often concentrate on large corporates, infrastructure, and agriculture, NBFCs have directed nearly half of their lending toward retail customers. In fact, in FY24, 48 percent of NBFC credit went to the retail sector, significantly higher than the 34 percent share held by banks in this category. (Source: <a href=\"https:\/\/www.ibef.org\/news\/nbfcs-will-continue-to-grow-at-a-faster-pace-have-grown-above-india-s-gdp-historically-report\" target=\"_blank\" rel=\"noopener\">www.ibef.org<\/a>)<\/p>\n\n\n\n<p>More importantly, NBFCs play a vital role in financial inclusion. They lend to individuals lacking a formal credit history, such as gig economy workers, self-employed individuals, or those in the informal sector. Their reach into India\u2019s grassroots and flexible lending models has allowed them to bridge credit gaps that traditional banking channels have historically ignored.<\/p>\n\n\n\n<p>The outlook for FY25 is even more promising. As India\u2019s economy gathers momentum and consumer confidence rises, the demand for accessible and diversified credit solutions is set to grow. Companies like SCML are strategically poised to capture this demand, riding the sector\u2019s momentum while expanding their operational footprint.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>Global Ambitions: A Glimpse into the Future<\/strong><\/h2>\n\n\n\n<p>SCML is not limiting its ambition to the domestic sphere. The company\u2019s board has also indicated interest in exploring opportunities in the <a href=\"https:\/\/www.equentis.com\/blog\/key-global-events-that-can-influence-the-stock-market-this-week-3\/\">global<\/a> financial markets. This includes expanding its <a href=\"https:\/\/www.equentis.com\/blog\/what-is-financial-advisory-complete-guide\/\">financial services<\/a> footprint internationally, which, if executed effectively, could significantly boost both revenue streams and investor sentiment.<\/p>\n\n\n\n<p>This outward-looking posture is crucial when Indian NBFCs actively explore diversification in product offerings and market geographies. With rising digitisation, cross-border financial services are becoming increasingly viable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><strong>Rewriting the Narrative: Not Just a Sub-\u20b91 Stock<\/strong><\/h2>\n\n\n\n<p>Standard Capital Markets&#8217; <a href=\"https:\/\/www.equentis.com\/blog\/reading-stock-charts-the-basics\/\">stock price<\/a> may be below \u20b91, but using that as the sole metric to judge the company&#8217;s value would be shortsighted. With two major NCD issuances, plans for international expansion, and a clear commitment to long-term strategy, SCML is seeking to rebrand itself not through words but through action.<\/p>\n\n\n\n<p>Market participants would do well to observe the trajectory of this NBFC as it attempts to reposition itself through calculated risk and capital deployment. Instead of viewing it through the narrow lens of price-per-share, a closer look at the company\u2019s financial moves and vision reveals a more nuanced story.<\/p>\n\n\n\n<p><strong>Conclusion<\/strong><\/p>\n\n\n\n<p>Standard Capital Markets strives to break away from the constraints that often limit low-priced stocks. By utilizing structured debt instruments and implementing strategic planning, the company aims to play a more significant role in the Indian and global financial ecosystems. Against the backdrop of India\u2019s rapidly growing non-banking financial company (NBFC) sector, SCML\u2019s development indicates not only a transformation within the company itself but also highlights a larger narrative about how alternative lending institutions are influencing the future of finance in India.<\/p>\n\n\n\n<p>This could be the right time for savvy investors and financial analysts to revisit SCML, not just for what it is today, but for what it is striving to become.<\/p>\n\n\n\n<p class=\"has-ast-global-color-5-color has-vivid-red-background-color has-text-color has-background has-link-color wp-elements-499db7743cd6e0732dbcf68b165a209c\">Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis &#8211; Research &amp; Ranking. We will not be liable for any losses that may occur. <a href=\"https:\/\/www.equentis.com\/blog\/mukul-agrawal-portfolio-shareholdings-investments-all-you-need-to-know\/\">Investments<\/a> in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by <a href=\"https:\/\/www.equentis.com\/blog\/sebi-registered-investment-advisor-meaning-eligibility\/\">SEBI<\/a>, membership of BASL &amp; the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What is Standard Capital Markets Limited (SCML)?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">SCML is a registered non-banking financial company (NBFC) under the Reserve Bank of India that offers financial services, including debt financing and investment advisory services.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>Why is SCML&#8217;s recent fundraising significant?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">The company raised \u20b9200 crore through secured, unlisted non-convertible debentures in two days, signalling strong investor confidence and aggressive growth plans.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What are Non-Convertible Debentures (NCDs)?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">NCDs are fixed-income instruments that companies use to raise long-term funds. They cannot be converted into equity shares and usually offer attractive interest <a href=\"https:\/\/www.equentis.com\/blog\/old-tax-regime-slabs\/\">rates<\/a>.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>\u00a0Are SCML&#8217;s NCDs considered safe investments?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">While the NCDs are secured, they are unrated. Investors rely on the company\u2019s track record and asset backing rather than credit agency assessments.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>How are NBFCs different from traditional banks?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">NBFCs do not hold banking licenses and cannot accept demand deposits. However, they offer a broad range of credit services and focus more on underserved retail segments.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Standard Capital Markets Limited (SCML), a registered Non-Banking Financial Company (NBFC) under the Reserve Bank of India, recently made a strategic move that has turned heads across the financial sector. Often overshadowed by its sub-\u20b91 share price, SCML is demonstrating that market value does not always reflect a company\u2019s underlying potential. With a fresh infusion of \u20b979 crore via non-convertible debentures (NCDs) on a private placement basis, the company is positioning itself for a more ambitious and forward-looking trajectory. <\/p>\n","protected":false},"author":25,"featured_media":56028,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[948,10],"tags":[],"class_list":["post-56027","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market-news","category-business"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/56027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=56027"}],"version-history":[{"count":9,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/56027\/revisions"}],"predecessor-version":[{"id":58081,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/56027\/revisions\/58081"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/56028"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=56027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=56027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=56027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}