Family Care Hospitals Plots a Healthy Comeback with Fundraising Plans

Family Care Hospitals Ltd has announced plans to consider a fundraising initiative, signaling a strategic move to bolster its financial position and support future growth. The decision comes as the company navigates a period of fluctuating revenues and ongoing capital requirements.

 

Key Highlights:

 

The board of Family Care Hospitals Ltd is set to evaluate various fundraising options, which may include rights issues, preferential allotments, or private placements to raise fresh capital.

 

In recent years, the company has actively pursued capital infusion, including a rights issue in early 2023 aimed at raising ₹48.92 crore and a private placement of 1.75 crore warrants in July 2024, expected to bring in ₹4.37 crore.

 

Prominent investors and promoter groups have shown commitment by subscribing to previous fundraising rounds, demonstrating confidence in the company’s long-term prospects.

 

The company’s market capitalization currently stands at ₹26 crore, with a share price of ₹4.80 as of April 21, 2025, reflecting a modest uptick in market sentiment.

 

Financially, Family Care Hospitals has faced challenges, with recent quarters showing a significant decline in net sales and profitability. For December 2024, net sales stood at just ₹0.03 crore, down 99.75% year-on-year, underscoring the urgent need for capital to stabilize operations.

 

Funds raised will likely be directed toward business development, working capital, branding, and marketing efforts, as well as general corporate purposes, in line with previous capital allocation strategies.

 

The fundraising decision is expected to be closely watched by investors, given the company’s recent performance and the healthcare sector’s evolving landscape.

 

Source: Business Standard, Moneycontrol, MarketScreener, Value Research Online