Shares of Aastha Spintex, the Gujarat-based integrated cotton yarn manufacturer, were locked at the 10% upper circuit in Wednesday’s trade, August 26, reaching ₹80 apiece, defying the weak broader market trend.
The rally came after the company fixed Wednesday, September 9, as the record date for determining shareholders eligible for the payment of a dividend. In addition, the company said that at its upcoming Annual General Meeting (AGM), shareholders will consider and approve a 1:1 bonus issue and an increase in the company’s authorised share capital from ₹45 crore to ₹100 crore.
Earlier, the Board of Directors had approved a comprehensive three-pillar growth plan, including a 1:1 bonus issue, a dividend, and strategic forward integration into fabric manufacturing, marking a transformative phase in the company’s evolution from a yarn manufacturer to an integrated textile player.
“Board members have approved the capitalisation of up to ₹44.14 crore from eligible free reserves, securities premium, and capital redemption reserve as of 31 March 2026, for issuing fully paid-up bonus equity shares of ₹10 each in the ratio of 1:1 (one bonus share for every one equity share held) to existing shareholders. The bonus shares shall be allotted to members whose names appear in the Register of Members/Beneficial Owners on the record date fixed by the Board,” the company said in its filing.
The approved bonus issue reflects the company’s confidence in its long-term growth outlook and its commitment to rewarding shareholders. The increase in authorised share capital will facilitate the issuance of bonus shares and support the company’s future capital requirements.
Expansion into value-added products
Alongside these initiatives, Aastha Spintex’s planned expansion into value-added textile products marks an important step towards strengthening its presence across the textile value chain and creating new opportunities for sustainable growth, the company said.
The proposed expansion into value-added fabric products is a natural progression of its enhanced manufacturing platform, enabling the company to leverage its expanded yarn production capabilities while moving further along the textile value chain.
These latest initiatives follow the acquisition of Falcon Yarns Private Limited, which more than doubled the company’s annual spinning capacity from 7,700 MT to 17,457 MT and increased its spindle capacity from 25,920 to 61,824.
The company recently announced a strong cumulative order book of approximately ₹51.46 crore for Falcon Yarns Pvt Ltd, its acquired company, for execution between August 2026 and October 2026.
Market performance
Aastha Spintex shares debuted on the stock exchanges on 6 July 2026 and have since traded in line with the broader weakness in the small-cap segment. The stock is currently trading 41% below its IPO issue price of ₹136, which some market participants believe presents an attractive long-term entry opportunity.
The company’s listing on both the NSE and BSE has enhanced liquidity, making the stock more accessible to both retail and institutional investors.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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