Metropolis Healthcare approves a 3:1 bonus issue funded from reserves ahead of FY2026

Metropolis Healthcare has cleared a major bonus issue, proposing three new equity shares for every existing share. The move aims to reward existing investors and could improve stock liquidity ahead of the next financial year. The proposal remains subject to shareholder, statutory, and regulatory approvals before implementation.

The Board of Directors approved the plan at a meeting on Wednesday, February 4, 2026. The company will announce the record date later, which will determine eligible shareholders. "The record date for determining the entitlement of the members of the Company to receive bonus equity shares will be announced in due course," said Metropolis Healthcare in a statement.

The Metropolis Healthcare bonus issue involves issuing 15,54,95,826 fully paid-up equity shares. Each share carries a face value of Rs 2, taking the overall bonus issue size to about Rs 31.09 crore. These shares will be allotted without any cash consideration, as the company will capitalise existing free reserves instead of raising fresh money.

The bonus ratio for the Metropolis Healthcare bonus issue stands at 3:1. Shareholders on the record date will receive three additional equity shares of Rs 2 each for every one share already held. The company has stated that all bonus shares will rank pari passu with current equity shares for dividends, voting rights, and other entitlements.

Before the Metropolis Healthcare bonus issue, authorised share capital stood at Rs 63.86 crore. This capital was divided into 31,93,04,015 equity shares, each with a face value of Rs 2. At that stage, issued, subscribed, and paid-up capital totalled Rs 10.36 crore, represented by 5,18,31,942 equity shares of Rs 2 each.

After giving effect to the Metropolis Healthcare bonus issue, issued, subscribed, and paid-up capital will rise sharply. It will increase to Rs 41.46 crore, split into 20,73,27,768 equity shares with a face value of Rs 2 each. The authorised share capital figure of Rs 63.86 crore will remain unchanged, leaving headroom for any future corporate actions.

Capital details	Pre Metropolis Healthcare bonus issue	Post Metropolis Healthcare bonus issue
Authorised share capital (Rs crore)	63.86	63.86
Number of authorised shares (face value Rs 2)	31,93,04,015	31,93,04,015
Issued, subscribed, paid-up capital (Rs crore)	10.36	41.46
Number of paid-up shares (face value Rs 2)	5,18,31,942	20,73,27,768

Metropolis Healthcare bonus issue: reserve utilisation and timeline

To execute the Metropolis Healthcare bonus issue, the company will need around Rs 31.09 crore from reserves. Management plans to use the Securities Premium Account, General Reserve, and Retained Earnings, as disclosed in the audited financial statements for the year ended March 31, 2025. No fresh capital infusion is planned for this corporate action.

Reserve category	Amount (Rs lakh)
Securities Premium	24,926.52
General Reserve	2,987.38
Retained Earnings	94,702.25

According to the latest audited figures as of March 31, 2025, these reserves are adequate for the Metropolis Healthcare bonus issue. The company expects to credit or dispatch the bonus shares to eligible shareholders on or before April 03, 2026. This estimated date is subject to completion of procedural and regulatory formalities.

Metropolis Healthcare bonus issue supported by Q3FY26 performance

The Metropolis Healthcare bonus issue follows a period of stronger operating performance. Consolidated profit after tax for Q3FY26 rose 33.7% year-on-year to Rs 42 crore, compared with Rs 31 crore in Q3FY25. Revenue from operations increased 25.8% year-on-year, moving from Rs 323 crore in Q3FY25 to Rs 406 crore in Q3FY26.

Metric	Q3FY25	Q3FY26	YoY change
Revenue from operations (Rs crore)	323	406	25.8%
EBITDA (Rs crore)	72	95	32.4%
EBITDA margin	22.2%	23.4%	+120 bps
Profit after tax (Rs crore)	31	42	33.7%

EBITDA during Q3FY26 increased 32.4% year-on-year to Rs 95 crore from Rs 72 crore. The EBITDA margin improved by 120 basis points, reaching 23.4% versus 22.2% a year earlier. Management performance on profitability and growth provides financial backing for the Metropolis Healthcare bonus issue and the utilisation of reserves.

Metropolis Healthcare bonus issue and stock price view

Alongside the Metropolis Healthcare bonus issue, market participants are tracking the stock’s technical levels. "Metropolis Healthcare stock price is slightly bullish on the Daily charts with strong support at 1835. A Daily close above resistance of 1975 could lead to a target of 2100 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

The company has clarified that the Metropolis Healthcare bonus issue is aligned with its stated objective of rewarding shareholders and supporting share liquidity. The decision relies on existing cash reserves and follows improved quarterly earnings, while the record date and final implementation steps will unfold over the coming months within the prescribed regulatory framework.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred to as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.