Synopsis:The stock of the textile company jumped 3.4 percent after announcing a 1:1 bonus issue, a final dividend, and expansion into the grey fabric business, and plans to increase its authorised share capital to Rs 100 crore.
The share of this company, which engages in manufacturing premium cotton yarns, cotton bales, and value-added textile products, serving textile manufacturers, exporters, and fabric processors across various end-use industries, came in focus after
With a market capitalization of Rs 456 crore, Aastha Spintex Ltd’s share on Thursday made a day high of Rs 106.90 per share, up by 3.4 percent from its previous day’s close price of Rs 103.30 per share. The company’s share has given a negative return of 16 percent since its listing on 10th July. Details of corporate actions:
Bonus Issue
The board approved a 1:1 bonus issue, under which shareholders will receive one fully paid-up bonus share for every one existing share held on the record date. The bonus shares will be issued by capitalising the company’s reserves and will rank equally with existing equity shares.
Example: An investor holding 100 shares on the record date will receive 100 additional bonus shares, increasing their total holding to 200 shares. The investment value generally remains unchanged immediately after the bonus issue, as the share price adjusts to reflect the increased number of shares.
Final Dividend
The board has recommended a final dividend of Re. 0.10 per equity share of face value Rs 10, equivalent to 1 percent of the face value, for the financial year ended March 31, 2026. The dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Example: An investor holding 100 shares will receive a total dividend of Rs 10 (100 × Rs 0.10), provided they hold the shares on the record date. The dividend will be credited to eligible shareholders’ bank accounts within 30 days of its declaration at the AGM.
The company said the record date for both the 1:1 bonus issue and the final dividend will be announced later after receiving the required stock exchange approvals and meeting regulatory requirements. As per SEBI rules, there must be a gap of three working days between the board approval and the record date, while the ex-date will be one working day before the record date.
Expansion Plans
The board has approved a proposal to increase the company’s authorised share capital from Rs 45 crore to Rs 100 crore, subject to shareholders’ approval at the upcoming general meeting. The move is aimed at providing greater financial flexibility to support the company’s future growth and expansion plans.
The company is also expanding beyond cotton yarn manufacturing by entering the grey fabric business, marking a step forward in its textile value chain. This follows the Falcon acquisition, which increased its annual yarn production capacity from 7,700 MT to 17,457 MT, a 127 percent increase.
Under the new strategy, Aastha Spintex will tie up with grey fabric manufacturers using its own cotton yarn and trade grey fabric in both domestic and international markets. The company plans to sell these products under its own in-house brand, helping it move towards higher value-added textile products.
About the Company
Aastha Spintex Limited is an integrated textile manufacturer engaged in the production of 100 percent cotton yarn and cotton bales. Incorporated in 2013, the company operates a state-of-the-art manufacturing facility at Halvad, Gujarat, offering carded, combed, and compact cotton yarn in the Ne 26 to Ne 40 count range.
With an integrated ginning and spinning operation, a strong focus on quality, operational efficiency, and sustainable manufacturing, Aastha Spintex serves a diverse B2B customer base across domestic and international markets.
Financial Highlights: Revenue from operations increased 15.08 percent YoY to Rs 351 crore in FY25 from Rs 305 crore in FY24. Its operating margin improved to 14 percent in FY25 from 12 percent in FY24. Net profit rose 50 percent YoY to Rs 24 crore in FY25 from Rs 16 crore in FY24, while earnings per share (EPS) increased 33.72 percent to Rs 7.97 in FY25 from Rs 5.96 in FY24.
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