Shares of Aastha Spintex Ltd, a micro-cap textile company, soared 20 percent on Tuesday, reaching a high of Rs 129.80. This significant jump followed the company's announcement that its Board of Directors would consider proposals for a bonus share issue, a final dividend, and a strategic forward integration into value-added textile products.
Board to Consider Bonus Share Issue and Dividend
In a post-market filing, Aastha Spintex informed exchanges that its Board would evaluate the issuance of fully paid bonus shares to existing shareholders. The proposed ratio is up to one new equity share for every one share currently held (1:1). The company clarified that this move, if approved, would capitalize free reserves without raising fresh funds. The record date, final bonus ratio, and implementation timeline will be announced after the Board's decision.
Additionally, the Board plans to consider declaring a final dividend of up to 100 percent on the face value of Rs 10 per equity share, which translates to up to Rs 10 per share for the financial year 2026. Aastha Spintex stated that this dividend aims to return a portion of the company's success directly to shareholders from its reserves and surplus fund.
Strategic Expansion into Value-Added Textiles
The textile company also revealed that its Board would deliberate on a strategic proposal to introduce forward-integrated textile products. These products, including Grey Fabric and other value-added fabric items, would be launched under Aastha Spintex's proprietary in-house brand. This initiative is supported by the company's enhanced cotton yarn manufacturing capacity of 17,457 MT per annum, acquired through the Falcon acquisition, allowing it to leverage existing production capabilities for greater value addition.
Aastha Spintex views this proposed expansion as a natural progression of its integrated textile strategy, rather than a diversification into a new business area. By utilizing its existing raw material base, manufacturing expertise, and the established textile ecosystem in Gujarat, the company aims to strengthen its presence across the textile value chain, move closer to end customers, and enhance overall profitability and long-term growth.
Significant Trading Volume and Market Impact
The announcement triggered heavy trading volume for Aastha Spintex shares, with approximately 41.83 lakh shares changing hands on the BSE. This volume was significantly higher than the two-week average volume of 1.15 lakh shares. The turnover on the counter reached Rs 53.93 crore, giving the company a market capitalization of Rs 570.32 crore.
The company, however, emphasized that these are forward-looking statements based on current management expectations and are subject to various risks and uncertainties. The Board retains full discretion to approve, modify, or reject any of the proposed agenda items.