Penny stock sets record date for 127:100 rights issue, down 76% from 1-year high

Small-cap firm Family Care Hospitals Ltd operates in the healthcare industry and has a market valuation of ₹43.59 Cr. The company's board of directors today declared the record date for a 127:100 rights issue, following which the stock's BSE closing price was positive.

The company has said in a stock exchange filing that “we wish to inform you that the Rights Issue Committee of the Board at its meeting held today, i.e. Wednesday, 28th December, 2022 has inter alia considered and approved the following terms of the Rights Issue:

a. Rights Issue size: up to 4,07,67,000 fully paid-up Equity Shares having face value of Rs. 10/- each at an issue price of Rs. 12/- per Equity Share (including a premium of Rs. 2 per Equity Share) aggregating up to Rs. 48,92,04,000/- (Rupees Forty Eight Crore Ninety Two Lakhs and Four Thousand only).

b. Rights Issue Price: Rs. 12 per Equity Share (including a premium of Rs. 2 per Equity Share).

c. Record Date: Tuesday, January 3, 2023

d. Outstanding Equity Shares: a. Prior to the Rights Issue: 32100000 b. Post Rights Issue*: 72867000

e. Rights Entitlement Ratio: 127 Equity Shares for every 100 Equity Shares held by the Eligible Equity Shareholders of the Company, as on the record date).

f. ISIN for Rights Entitlement: The Company is in the process of obtaining ISIN for rights entitlements and will update accordingly.”

The shares of Family Care Hospitals Ltd closed today on the BSE at ₹13.58 apiece level, up by 2.26% from the previous close of ₹13.28. The stock recorded a total volume of 223,503 shares compared to the 20-Day average volume of 153,828 shares. The stock has climbed by 24% over the past five years and 18% over the past three years. The stock has dropped 33% during the past year, and on a year-to-date basis, it has fallen 35.98% so far in 2022. 

The stock had touched a 52-week-high of ₹58.15 on (04/07/2022) and a 52-week-low of ₹11.50 on (26/12/2022), indicating that at the current market price the stock is trading 76.64% below the 1 year high and 18.08% above the recent 1 year low. For the quarter ended September 2022 or Q2FY23, the company reported a promoter shareholding of 13.74% and a public stake of 86.26%.