Aastha Spintex declares 1:1 bonus shares. Record date, other announcements you may like to know

Recently listed Aastha Spintex share price was in focus on Thursday, July 22, after the company announced a 1:1 bonus share issue, alongside recommending a final dividend of Re 0.10 per share for FY26. The board also approved raising the company's authorised share capital to ₹100 crore and cleared its expansion into the grey fabric business.

The decisions were approved by the company's board of directors at its meeting held on July 23, subject to the necessary shareholder and regulatory approvals.

The stock rose around 3% to its day's high of ₹106.25 per share on BSE.

The record date for both the bonus issue and the final dividend will be announced separately after the company receives in-principle approval from the stock exchanges and complies with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. The company said there will be a gap of three working days between the board approval and the record date, while the ex-date will be one working day before the record date.

Bonus issue: The board approved the issuance of one fully paid-up equity share of face value ₹10 for every one existing fully paid-up equity share held by eligible shareholders as on the record date. The bonus shares will be issued through the capitalisation of the company's reserves and surplus in accordance with the Companies Act, 2013 and SEBI regulations.

The bonus issue will be subject to shareholder approval, where applicable, in-principle approval from the stock exchanges and other statutory and regulatory clearances. The bonus shares will rank pari-passu with the existing equity shares and will be listed on a T+2 basis from the record date.

Aastha Spintex proposes to issue around 4,41,42,190 bonus equity shares of face value ₹10 each, amounting to ₹44,14,21,900, in the approved 1:1 ratio. Following the bonus issue, the company's paid-up equity share capital will increase from ₹44,14,21,900 comprising 4,41,42,190 equity shares to ₹88,28,43,800 comprising 8,82,84,380 equity shares.

Dividend: Alongside the bonus issue, the board recommended a final dividend of Re 0.10 per equity share of face value ₹10 each, representing 1% of the face value, for the financial year ended March 31, 2026. The dividend, if approved by shareholders at the upcoming annual general meeting, will be paid out of the company's FY26 profits and credited to eligible shareholders within 30 days of its declaration.

Other announcements

The company also approved increasing its authorised share capital from ₹45 crore to ₹100 crore by amending Clause V of its Memorandum of Association. The proposal is aimed at facilitating future equity issuances and will require shareholders' approval at the ensuing general meeting.

Apart from the corporate actions, the board approved Aastha Spintex's expansion into the grey fabric business, marking its move up the textile value chain. The company said it has built its business as a cotton yarn manufacturer over the past decade and, following the Falcon acquisition, expanded its annual capacity from 7,700 metric tonnes to 17,457 metric tonnes, a 127% increase.

As part of the expansion, Aastha Spintex will manufacture and trade grey fabrics for domestic and international customers. It will tie up with grey fabric manufacturers using its own cotton yarn, trade grey fabric in domestic and overseas markets, and sell all fabric products under its proprietary in-house brand while leveraging its existing manufacturing expertise and the Gujarat textile ecosystem.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.