According to an exchange filing, Aastha Spintex board will convene on Thursday, July 23, to consider multiple strategic proposals. The board meeting will evaluate a bonus issue proposal, declaration of a final dividend, and expansion into forward-integrated textile products. The company has scheduled this board meeting to deliberate on these significant corporate actions that could impact shareholder value and business expansion. As reported by The Economic Times, this comes after the company made its market debut earlier this month, with investors actively awaiting the bonus issue and dividend announcement.
As reported by the exchange filing, the board has now approved the 1:1 bonus share issue to existing shareholders, with the record date set for July 22. The bonus shares will be issued by capitalising the company's free reserves, with no fresh funds being raised. The board also approved a final dividend of ₹0.10 per equity share for FY26, amounting to ₹0.10 per equity share of face value ₹10. According to The Hindu BusinessLine, the approval will increase the company's authorised share capital from ₹45 crore to ₹100 crore to facilitate the bonus issue. The board also approved raising share capital to ₹100 crore, which is pending regulatory approvals. The company has announced that the record date for the bonus issue will be announced after receiving in-principle approval from the stock exchanges.
According to the company statement, the board will deliberate on introducing forward-integrated textile products, including grey fabric and other value-added fabric products, under the company's in-house brand. The proposed initiative is supported by the company's enhanced cotton yarn manufacturing capacity of 17,457 metric tonnes per annum following the acquisition of Falcon Yarns. As reported by The Hindu BusinessLine, this expansion represents an important step in strengthening the company's presence across the textile value chain and creating new opportunities for sustainable growth. The company aims to strengthen its presence across the textile value chain and move closer to the end customer while enhancing profitability and long-term growth by utilizing the same raw material, manufacturing expertise, and established textile ecosystem in Gujarat. Divyang Jashwant Patel, Managing Director, emphasized that every phase of growth has been guided by a long-term vision of building a stronger and more integrated textile business, stating that "As we continue to strengthen our manufacturing capabilities, this is the right time to move further along the textile value chain."
The company's spinning capacity is expected to increase from 7,700 MT to 17,457 MT, while spindle capacity will rise from 25,920 to 61,824, representing a 2.3x expansion. According to the latest investor presentation, the company expects to more than double its spinning capacity through the acquisition. The acquisition is being executed in three tranches, with ₹20 crore already paid before the IPO. The balance payment from IPO proceeds is pending due to procedural formalities and will be completed shortly in accordance with the terms of the agreement. The current order book exceeds existing production capacity, indicating that the Falcon Yarns acquisition is intended to address capacity constraints while supporting future growth. For FY2025, Falcon Yarns reported revenue of ₹249.44 crore, net profit of ₹1.37 crore, operating cash flow of ₹11.85 crore, and net worth of ₹50.30 crore.
As reported by The Economic Times, Aastha Spintex shares debuted on July 6, 2026 and have since traded in line with the broader weakness in the small-cap segment. The stock was in focus on July 22 following the announcement of the bonus issue and dividend declaration. 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 NSE and BSE has enhanced liquidity, making the stock more accessible to both retail and institutional investors. The ₹170-crore initial public offering was subscribed 4.64 times during its subscription period from June 29 to July 1. The NII portion saw the strongest interest, attracting 7.62 times subscription, while QIBs subscribed 3.30 times and the retail quota was booked 2.33 times. However, after listing, Aastha Spintex shares plunged further, dropping around 26% to hit a record low of ₹95.85 and closing at ₹95.85, with the company currently having a market capitalisation of ₹457 crore. On Thursday, shares of Aastha Spintex were trading at ₹105.90 per share on the NSE, up 2.58%, as reported by Moneycontrol. The company's ₹100 crore authorised share capital increase from the previous ₹45 crore will provide additional flexibility for future fundraising and expansion plans.
