Corporate Actions
The board approved a 1:1 bonus issue, giving shareholders one fully paid‑up share for each share held, to be issued by capitalising reserves. The record date will be set after stock‑exchange approval, with a minimum three‑working‑day gap from board approval and an ex‑date one day prior.
The board also recommended a final dividend of Rs0.10 per equity share (1% of face value Rs10) for the financial year ended 31 March 2026, subject to shareholder approval at the upcoming Annual General Meeting. The dividend will be credited within 30 days of the AGM declaration.
Share Price Reaction
Following the announcement, Aastha Spintex Ltd’s share price rose 3.4% to a day‑high of Rs106.90 from the previous close of Rs103.30. The company’s market capitalisation stands at approximately Rs456 crore. Since its listing on 10 July, the stock has delivered a cumulative negative return of 16%.
Capital Structure Expansion
The board proposed increasing the authorised share capital from Rs45 crore to Rs100 crore, pending shareholder approval at the general meeting, to provide greater financial flexibility for growth initiatives.
Business Expansion
Aastha Spintex is moving beyond cotton yarn manufacturing into the grey‑fabric segment. Under the new strategy it will partner with grey‑fabric manufacturers, use its own cotton yarn as input, and market the finished grey fabrics domestically and internationally under its own brand.
The company’s recent acquisition of Falcon has raised its annual yarn production capacity from 7,700 metric tonnes to 17,457 metric tonnes, a 127% increase.
Financial Performance FY25
Revenue from operations grew 15.08% year‑on‑year to Rs351 crore in FY25, up from Rs305 crore in FY24. Operating margin improved to 14% from 12% in the prior year. Net profit rose 50% YoY to Rs24 crore, and earnings per share increased 33.72% to Rs7.97 from Rs5.96.