Whalesbook
Standard Capital Markets is poised to become debt-free on its ₹500 crore Non-Convertible Debenture (NCD) issuance. The company's board has greenlit the final redemption tranche, valued at ₹232.02 crore, concluding a major debt management initiative for the non-banking financial company (NBFC).
The company is expected to complete this final redemption within five working days. This move officially removes ₹232.02 crore of debt linked to the NCDs from the company's books. With the ₹500 crore NCD program fully redeemed, Standard Capital Markets will see reduced leverage and lower interest expenses. The balance sheet will show no outstanding debt from this particular issuance, potentially improving key financial metrics like the debt-to-equity ratio.
Standard Capital Markets, an NBFC established in 1987, offers various financial services including personal, gold, and business loans. In October 2024, it initiated the ₹500 crore NCD raise, which carried a 10% interest rate and a 60-month term, aiming to boost its capital base and support growth. Over recent months, the company has been working through systematic redemptions of these NCDs across several tranches. The repayment structure was also amended in March 2026 to a more flexible model tied to receivables, enhancing liquidity management. Promoter support has also been evident, with a ₹100 crore infusion announced in March 2026, following a previous ₹195 crore infusion.
Despite this positive step, investors will likely keep an eye on Standard Capital Markets' reliance on debt for future funding and its capacity to generate steady profits from lending. No significant past regulatory issues were noted for the company within the relevant timeframe.
Operating in the NBFC sector alongside giants like Bajaj Finance, Shriram Finance, Muthoot Finance, and Jio Financial Services, Standard Capital Markets is a micro-cap company with a considerably smaller market capitalization. Its P/E ratio of 1.6x is also notably lower than its larger peers, indicating a distinct market valuation.
Key financial metrics include a Total Debt/Equity Ratio of 4.38 as of March 2025. Investors will be watching for Standard Capital Markets' future capital raising plans, the performance of its core lending business (especially asset quality and profitability), and any additional steps towards strengthening its balance sheet. Management commentary on growth prospects, debt management strategies, and how the company plans to use its debt-free status for funding or expansion will be key.