Aastha Spintex proposes 1:1 bonus, ₹100 crore capital increase as it expands into fabrics
The Gujarat cotton-yarn maker has set September 9 as the dividend record date and proposed a 1:1 bonus issue. Following its Falcon Yarns acquisition, Aastha Spintex has lifted spinning capacity to 17,457 MT and is pursuing forward integration into fabrics.
What happened
Gujarat-based cotton-yarn maker Aastha Spintex set a September 9 dividend record date, proposed a 1:1 bonus issue and ₹100 crore authorised-capital increase,
Key facts
- ₹80 share price
- 10% upper circuit
- 1:1 bonus issue
- Authorised share capital increase from ₹45 crore to ₹100 crore
- Up to ₹44.14 crore capitalisation
- Spinning capacity increased from 7,700 MT to 17,457 MT
- Spindle capacity increased from 25,920 to 61,824
- ₹51.46 crore order book
- 41% below ₹136 IPO price
Why this matters
Falcon Yarns provides a strategically relevant capacity and order-book bolt-on that strengthens Aastha Spintex’s path toward vertically integrated fabric production, though integration and execution through October 2026 remain key risks.
What to watch
- Completion terms, funding structure, and operational integration milestones for Falcon Yarns.
- Monthly capacity utilization and order-book conversion between August and October 2026.
- Announcement of fabric project capex, commissioning timeline, product mix, and customer contracts.
- Debt, receivables, inventory days, and operating-cash-flow trends after the expansion.
- Cotton and yarn price spreads, which will determine whether higher capacity translates into margin gains.
- Shareholder and regulatory approval status for the bonus issue and capital increase.
- Seek shareholder approvals for the 1:1 bonus issue and ₹100 crore capital increase.
- Integrate Falcon Yarns' operations, order book, customers, and procurement network.
- Deploy capital toward fabric-manufacturing assets, technology, working capital, or additional downstream capacity.
- Use the enlarged equity base and bonus issue to improve retail-market participation and support future fundraising flexibility.