10:1 stock split and 2:3 & 1:1 bonus shares: Multibagger textile penny stock under Rs 10 hit back-to-back upper circuit; Here’s why!

Padam Cotton Yarns Ltd's Board of Directors met today, July 11, 2025, and approved an increase in the company's Authorised Share Capital. This will see the capital expand from the current Rs 13 crore to Rs 22 crore, necessitating corresponding amendments to Clause V of the Memorandum of Association, subject to necessary approvals. This increase in authorised capital is a prerequisite for future fundraising activities.

Following this capital increase, the Board also considered and decided to explore various fundraising options, including the issuance of equity shares and/or other eligible securities such as warrants or convertible instruments. The company aims to raise up to Rs 20 crore through methods like a preferential issue or rights issue, or a combination thereof. A separate Board meeting will be convened once the formalities for the Authorised Share Capital increase are completed to finalise the terms of this fundraising.

The company's existing equity shares underwent a sub-division/split with an ex-date of Friday, June 27, 2025. This split resulted in every one fully paid-up equity share with a face value of Rs. 10 being subdivided into ten fully paid-up equity shares, each with a face value of Re 1. Before this, the company had also executed two bonus issues: a 2:3 bonus issue with a record date of Tuesday, March 18, 2025, followed by a 1:1 bonus issue with a record date of Wednesday, January 08, 2025.

Padam Cotton Yarns Ltd., established in 1994, is a company specialising in the production of cotton yarn and consulting services. Their primary product is Tow Dyed, Bulked Acrylic Yarn, manufactured using advanced Tow-based technology sourced from Japan Exlan. Beyond yarn production, the company offers valuable consultation services to the textile industry and engages in wholesale trading of agricultural pumping sets and implements.

On Friday, shares of Padam Cotton Yarns Ltd hit a 2 per cent upper circuit to Rs 5.76 per share from its previous closing of Rs 5.65 per share. In the recent trading sessions, the stock has been hitting back-to-back upper circuits. The company has a market cap of Rs 74.4 crore and the stock gave multibagger returns of 357 per cent from its 52-week low of Rs 1.26 per share.

Disclaimer: The article is for informational purposes only and not investment advice.