Bonus bonanza! Aastha Spintex to consider bonus issue, dividend less than a month since debut on July 23

Textile player Aastha Spintex, which made its market debut earlier this month, announced today that its board of directors will consider a 1:1 bonus issue of shares along with a final dividend for FY26 on July 23 (Thursday).

In an exchange filing, Aastha Spintex said that the board will consider declaring a final dividend up to Rs 10 per equity share. "The board wants to return a portion of that success directly to shareholders from the company reserved and surplus fund," it said.

Investors will actively be awaiting the bonus issue and dividend announcement. A bonus issue consists of free shares distributed by a company from its reserves and is often seen as a sign of strong financial health and growth prospects. While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to add shares of the company to their portfolio.


Aastha Spintex expansion

Aastha Spintex also announced today that its board during its meeting scheduled for Thursday will deliberate on a strategic proposal to introduce forward-integrated textile products, including grey fabric and other value-added fabric products, under the company's proprietary in-house brand. “This initiative is supported by Aastha's enhanced cotton yarn manufacturing capacity of 17,457 MT per annum following the Falcon acquisition, enabling the company to leverage its existing production capabilities for greater value addition,” it said.

The proposed expansion represents a natural progression of Aastha Spintex’s integrated textile strategy rather than a diversification into a new business, the company said, adding that by utilizing the same raw material, manufacturing expertise, and established textile ecosystem in Gujarat, 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.

Aastha Spintex share price

This comes after Aastha Spintex shares listed at a discount of more than 4% over IPO price at Rs 130 apiece on July 6, as against its issue price of Rs 136. The Rs 170-crore initial public offering (IPO) of the company which was open between June 29 and July 1, witnessed an overall subscription of 4.64 times. 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.

Also read | Aastha Spintex shares list at 4% discount to IPO price on BSE, NSE

After listing, Aastha Spintex shares plunged further, dropping around 19% to hit a record low of Rs 105.33 apiece today. The shares of the company tumbled more than 7% to close at Rs 107.55 apiece today.

Aastha Spintex shares are overall down more than 22% from its IPO price. The company currently has a market capitalisation of Rs 472 crore.

Founded in Gujarat, Aastha Spintex produces cotton spun yarn from its integrated spinning facility in Halvad. Its products, including carded, combed and compact cotton yarn, serve customers across the weaving, knitting, hosiery and garment manufacturing industries in India and overseas.


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