This Penny Stock Below Rs 100 Approves 1:1 Bonus Issue; Dividend Record Date Set for September 9

On Wednesday, August 26, 2026, shares of Aastha Spintex remained in focus after the company announced a series of shareholder-friendly and expansion initiatives, including a 1:1 Bonus issue, final Dividend and forward integration into fabric manufacturing.

The Board of Directors, at its meeting held on August 25, 2026, fixed September 9, 2026, as the record date for determining eligible shareholders for the proposed dividend. The company's 13th Annual General Meeting (AGM) is scheduled to be held on September 16, 2026, where shareholders will consider the proposed 1:1 bonus issue and other resolutions.

1:1 Bonus Issue and Increase in Authorised Capital

Aastha Spintex has approved a proposal to issue fully paid-up bonus equity shares of Rs 10 each in the ratio of 1:1, meaning shareholders will receive one bonus share for every one equity share held, subject to the applicable approvals.

The company plans to capitalise up to Rs 44.14 crore from eligible free reserves, securities premium and capital redemption reserve as of March 31, 2026, for the bonus issue.

To facilitate the bonus issue and support future capital requirements, the company has also approved increasing its authorised share capital from Rs 45 crore to Rs 100 crore.

The bonus shares will be allotted to shareholders whose names appear in the Register of Members or the records of beneficial owners on the applicable record date to be determined in accordance with the required approvals.

Dividend Record Date Fixed for September 9

Alongside the bonus issue, the Board has recommended a final dividend of Re 0.10 per equity share of face value Rs 10 for FY26. The dividend remains subject to shareholder approval at the upcoming AGM.

The company has fixed Wednesday, September 9, 2026, as the record date for determining eligible shareholders for the proposed dividend.

Expansion From Yarn to Fabric Manufacturing

Aastha Spintex is also pursuing a strategic move into forward-integrated textile products, including grey fabric and other value-added fabric products under its proprietary brand.

The initiative is aimed at expanding the company's presence across the textile value chain, moving beyond its existing yarn manufacturing operations and allowing it to capture additional value from its expanded manufacturing platform.

The company said the strategy is built around three pillars — financial excellence, shareholder rewards and vertical integration from yarn to fabric.

Falcon Yarns Acquisition Expands Manufacturing Capacity

The company's forward integration strategy follows its recent acquisition of Falcon Yarns Private Limited

Following the acquisition, Aastha Spintex's annual spinning capacity is expected to increase from 7,700 MT to 17,457 MT, while spindle capacity is set to rise from 25,920 to 61,824.

Falcon Yarns also has a confirmed cumulative Order Book of approximately Rs 51.46 crore, comprising 38 orders aggregating 17.35 lakh kilograms of cotton yarn. The orders are scheduled for execution between August 2026 and October 2026 and have been secured from a diversified base of more than 10 domestic clients.

Strong Financial Performance

Aastha Spintex reported revenue from operations of Rs 352 crore and net profit of Rs 23.8 crore in its FY26 results, as stated in the company's release.

The company highlighted that its net profit increased significantly over the past four years, rising from approximately Rs 1 crore to Rs 23.8 crore, representing growth of around 2,200 per cent.

The company also reported an improvement in operating profitability, with its Operating Profit Margin increasing from 5.87 per cent in FY23 to 14.16 per cent in FY25, while EBITDA margin improved from 6.05 per cent to 14.45 per cent during the same period.

About Aastha Spintex 

Aastha Spintex Ltd is an integrated textile manufacturer engaged in the production of 100 per cent cotton yarn and cotton bales. Incorporated in 2013, the company operates a manufacturing facility at Halvad, Gujarat, producing carded, combed and compact cotton yarn in the Ne 26 to Ne 40 count range. Its integrated ginning and spinning operations serve a diversified B2B customer base across domestic and international markets, with a focus on quality, operational efficiency and sustainable manufacturing.

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