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.

Market performance

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.

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