Aastha Spintex sets board meeting date to consider and approve 1:1 bonus shares, 100% final dividend

Aastha Spintex, the Gujarat-based integrated cotton yarn manufacturer, today announced that its board of directors will meet on Thursday, 23 July, to consider a bonus issue and a final dividend for shareholders.

"The Board will evaluate the issuance of fully paid-up bonus shares to existing shareholders in the ratio of up to one new equity share for every one equity share currently held. The proposal, if approved, will involve the capitalisation of the company's free reserves, with no fresh funds being raised. The idea is simple: shareholders will own more shares in the same company, and the move reflects the board's confidence that the underlying business has earned the right to expand its equity base," the company said in its exchange filing.

It will also consider declaring a final dividend of up to 100% on the face value of ₹10 per share for FY26, translating into a dividend of up to ₹10 per equity share. "The board wants to return a portion of that success directly to shareholders from the company's reserves and surplus," the company added.

Earlier, in its latest investor presentation, the company said it expects to more than double its spinning capacity through the acquisition of Falcon Yarns, a move aimed at meeting rising demand and expanding its production capabilities.

Following the acquisition, the company's spinning capacity is expected to increase from 7,700 MT to 17,457 MT, while its spindle capacity will rise from 25,920 to 61,824, representing a 2.3x expansion.

The company said its current order book exceeds its existing production capacity, indicating that the Falcon Yarns acquisition is intended to address capacity constraints while supporting future growth.

The acquisition is being executed in three tranches, with ₹20 crore already paid before the IPO. According to the company, the balance payment from the IPO proceeds is pending due to procedural formalities and will be completed shortly in accordance with the terms of the agreement.

For FY2025, Falcon Yarns reported revenue of ₹249.44 crore, net profit of ₹1.37 crore, operating cash flow of ₹11.85 crore, and a net worth of ₹50.30 crore.

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 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.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside ...