1:1 Bonus Issue: This Low PE, High ROCE Textile Stock Approves Bonus Shares, Final Dividend & Entry Into Grey Fabric Business; Check If You Hold

On Thursday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index declining 135.00 points, or 0.56 per cent, to 23,861.25. Despite the weak market sentiment, Aastha Spintex share price jumped 1.93 per cent to Rs 105.23 after the company announced multiple corporate actions, including a 1:1 Bonus issue, final Dividend, increase in authorised share capital, and its entry into the grey fabric business.

Aastha Spintex Board Approves 1:1 Bonus Issue

The Board of Directors approved the issuance of one bonus equity share for every one existing fully paid-up equity share held by eligible shareholders, subject to shareholder approval, stock exchange approvals and other statutory requirements. The company will issue approximately 4.41 crore bonus shares of face value Rs 10 each, amounting to Rs 44.14 crore, through the capitalisation of free reserves and share premium. The bonus shares are expected to be credited on or before September 22, 2026.

Authorised Share Capital Doubled

To facilitate the bonus issue and future capital requirements, the Board approved increasing the company's authorised share capital from Rs 45 crore to Rs 100 crore, subject to shareholder approval. Following the bonus issue, the company's paid-up equity share capital will increase from 4.41 crore equity shares to 8.82 crore equity shares.

Final Dividend Recommendation

The Board also recommended a final dividend of Re 0.10 per equity share, equivalent to 1 per cent of the face value of Rs 10 per share, for the financial year ended March 31, 2026. The dividend is subject to shareholders' approval at the upcoming Annual General Meeting and will be paid within 30 days of its declaration. The company said the record date for both the bonus issue and dividend will be announced separately.
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Forward Integration into Grey Fabric

As part of its long-term growth strategy, Aastha Spintex announced its forward integration into the grey fabric business, moving beyond cotton yarn manufacturing. Following the acquisition of Falcon, the company's yarn manufacturing capacity increased from 7,700 MT per annum to 17,457 MT per annum, representing a 127 per cent increase.

The company will partner with grey fabric manufacturers using its own cotton yarn, trade grey fabric in domestic and international markets, and market the products under its own in-house brand. The move is expected to enhance value addition and strengthen the company's position across the textile value chain.

About Aastha Spintex

Aastha Spintex Ltd is a Gujarat-based textile company primarily engaged in the manufacturing of cotton yarn. Over the years, the company has expanded its production capabilities and strengthened its presence in the textile industry through strategic capacity additions and acquisitions.

With its latest forward integration into the grey fabric segment, Aastha Spintex aims to become an integrated textile company offering higher value-added products to domestic and international customers. The company plans to leverage its existing manufacturing expertise, raw material sourcing capabilities and established presence in Gujarat's textile ecosystem to drive future growth.

Share your thoughts on Aastha Spintex's bonus issue and expansion into the grey fabric business in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.