Aastha Spintex Sets September 9 Record Date for Dividend, Proposes 1:1 Bonus Issue

Cotton yarn manufacturer Aastha Spintex has scheduled September 9 as the record date for an upcoming dividend. Additionally, the company's board has proposed a 1:1 bonus issue, an increase in authorized share capital, and an expansion into value-added textile products.

Integrated cotton yarn manufacturer Aastha Spintex has fixed September 9 as the record date to determine shareholders eligible for a dividend payment of ₹0.10 per equity share. The dividend remains subject to shareholder approval at the company’s annual general meeting, which is scheduled for September 16.

Alongside the dividend, the company's board will place several key proposals before the shareholders at the upcoming AGM. These include a proposal to issue a 1:1 bonus share allotment and a plan to increase the company’s authorized share capital from ₹45 crore to ₹100 crore.

To facilitate the bonus issue, the board has approved the capitalization of up to ₹44 crore from eligible free reserves, securities premium, and capital redemption reserves as of the end of March. The fully paid-up bonus equity shares will be allotted to members whose names appear in the register on the board's designated record date. According to the company, the increase in authorized share capital will support both the issuance of these bonus shares and the firm's broader capital requirements.

In addition to these corporate actions, the Board of Directors has approved a business expansion into forward-integrated textile products. This includes moving into grey fabric and other value-added fabric products under the company’s proprietary brand.

The strategic developments follow recent announcements regarding the company's order book. Aastha Spintex recently reported a cumulative order book position of approximately ₹51 crore for its subsidiary, Falcon Yarns.

The company stated that the expansion into value-added textile products marks a significant step in strengthening its operational footprint across the textile value chain while establishing avenues for future growth.

"Corporate actions such as dividend distributions, bonus issues, and expansions in authorized share capital are important mechanisms for managing capital structures and rewarding shareholders. For manufacturing and textile companies, backing these financial steps with forward integration into value-added products and maintaining a strong order book helps build operational resilience and supports long-term business positioning within the sector." — Dr. Shishir Gupta, Founder & CEO, StartupLanes