6,693% Returns: Below Rs 75, Pharma Penny Stock Ex-Dividend For Rs 40/Sh Payout After 9 Years; Do You Own?

Fortis Malar Hospitals, a penny stock in the pharmaceutical sector, trading below Rs 75, has turned ex-dividend for its highest-ever dividend payout of Rs 40 per share. This is also the first dividend recommendation since September 2015. Fortis Malar's all-time gains are more than 6,693% on BSE.

Fortis turned ex-dividend on April 23. On this day, the stock froze at its 5% upper circuit limit, which means that there were no sellers but only buyers in the stock. It ended at Rs 71.33 apiece. The company's market cap is at Rs 133.68 crore.

YTD, Fortis Malar shares have zoomed by 19%, while in a year, the upside is around 43.5%, and in 5 years, the gain is about 25.58%. But Fortis Malar's all-time surge is around a whopping 6,693.33%. The stock price was merely at Rs 1.05 apiece on July 6, 1999.

Fortis recommended an interim dividend of 40/- (Rupees Forty only) per equity share of Rs. 10/- each on the entire issued, subscribed and paid-up share capital of the Company of 1,87,41,759 equity shares of the nominal value of Rs. 10/- (Rupees ten only) each.

Its board decided to declare this interim dividend of 400% (on the face value of Rs.10 per share) which it believes is optimal after taking into consideration various factors including the Company's obligations under various agreements, as well as contingencies and available distributable free reserves.

The dividend will be credited to the account of the shareholders, or the dividend warrant in respect thereof will be dispatched within 30 days from the date of its declaration.

The last time Fortis Malar paid dividends was in September 2015 for Rs 0.50 per share. Before that, the company paid a dividend of Rs 0.50 per share in 2013.

Due to the dividend payout, the issue price of the open offer by Bursa Malaysia Securities Berhad, IHH has been adjusted.

In its regulatory filing, Fortis Malar said, IHH Healthcare Berhad, Parent Company of Northern TK Venture Pte. Ltd. ("NTK- promoter of Fortis Healthcare Limited"), to the Bursa, Malaysia and Singapore Stock Exchanges, regarding adjustment of the Offer Price for the acquisition of up to 4,894,308 (Four million, eight hundred and ninety-four thousand, three hundred and eight only) equity shares of the Company of face value of INR 10/- each, by NTK together with IHH Healthcare Berhad and Parkway Pantai Limited. The decision was made on April 17.

The price was adjusted to Rs 20.1 per share from earlier Rs 60.1 per share in the open offer.

Fortis Malar Hospital, formerly known as Malar Hospital, was Established in 1992 and became a household name for tertiary care hospital services in Chennai over the years. In 2007, Fortis Healthcare - India's fastest-growing hospital network acquired stakes in Malar Hospital Limited.

Now, with a 180-bed multi-speciality, tertiary care Fortis Malar Hospital, Chennai offers comprehensive medical care in more than 40 specialities such as cardiology, cardio-thoracic surgery, neurology, neurosurgery, orthopaedics, nephrology, gynaecology, gastroenterology, urology, paediatrics, and diabetes among others. The hospital specialises in cutting-edge medical technology and dedicated patient care services. At the hospital, the company has more than 160 consultants and 650 employees to manage over 11,000 inpatients. The unwavering commitment, precision and synchronised teamwork make Fortis Malar Hospital the most preferred healthcare destination in Chennai.