Penny stock Family Care Hospitals declares stock split

The Board of Family Care Hospitals has approved a proposal to split the nominal value of its equity shares from Rs 10 each to Re 1 each.

"Board decided to split shares of the company which results in improved liquidity in the market and will increase affordability to the new investor. The sub-division will be of the nominal value of Rs equity shares of the company from the existing nominal value of Rs 10 each to nominal value of Rs 1 each," the company said in a filing on Thursday.

Stock split is usually done to increase the liquidity of the stock in the market. On the ex-split date, the stock price will be adjusted according to the split ratio.

The Board has also considered the agenda of the issue of bonus shares but decided against it

"On considering the cost implied and benefits to all stakeholders and considering the negative impact on the EPS of the company, the board of directors decided not to proceed with the bonus issue at this juncture and decided not to take this agenda for approval," it said.

Further, the board has approved keeping the paid-up share capital intact.

"Consequent to the sub-division of shares the existing Clause V of Memorandum of Association of the Company be and is hereby decided to be deleted and substituted by the following new Clause V: The authorised share capital of the company is Rs 75 crore divided into 75 crore equity shares of Rse1 each," the company said.

On Friday, shares of Family Care Hospitals were trading 0.85% higher at Rs 11.86 on the BSE. In the last one year, the stock has lost nearly 41%.

Family Care Hospitals is one of the leading hospital chains in Mumbai. The Company offers general surgeries, gynaecology, orthopedics, cardiology, urology, and cardiology services.