This micro-cap textile stock zooms 20% on bonus issue, dividend, product expansion proposal; do you own?

Shares of micro-cap textile company Aastha Spintex Ltd zoomed 20 per cent on Tuesday to hit a high of Rs 129.80 after the company informed exchanges that its Board will consider proposals related to a bonus issue, final dividend and forward integration into value-added textile products.

The stock recorded heavy trading volume along with the price action as around 41.83 lakh shares changed hands on BSE. The figure was way more than the two-week average volume of 1.15 lakh shares. Turnover on the counter came at Rs 53.93 crore, commanding a market capitalisation (m-cap) of Rs 570.32 crore.

In a post-market filing yesterday, Aastha Spintex said its Board will evaluate the issuance of fully paid bonus shares to existing shareholders in a ratio of up to one new equity share for every one share currently held (1:1).

"The proposal, if cleared, will capitalise free reserves. No fresh funds are being raised," the company added.

It clarified that the record date, final bonus ratio and implementation timeline will be announced only after the Board takes a decision.

The Board will also consider declaring a final dividend of up to 100 per cent on the face value of Rs 10 per equity share, translating into up to Rs 10 per share for FY26.

"The board wants to return a portion of that success directly to shareholders from the company's reserves and surplus fund," Aastha Spintex stated.

Additionally, the textile company said its Board will deliberate on a strategic proposal to introduce forward-integrated textile products, including Grey Fabric and other value-added fabric products, under its proprietary in-house brand.

According to the company, the initiative will be supported by its enhanced cotton yarn manufacturing capacity of 17,457 MT per annum following the Falcon acquisition, allowing it to leverage existing production capabilities for greater value addition.

Aastha Spintex said the proposed expansion is a natural progression of its integrated textile strategy rather than a diversification into a new business. By utilising the same raw material base, manufacturing expertise and established textile ecosystem in Gujarat, the company aims to strengthen its presence across the textile value chain, move closer to end customers, and enhance profitability and long-term growth.

The company, however, noted that these are forward-looking statements based on management's current expectations and are subject to risks and uncertainties. It added that the Board retains full discretion to approve, modify or reject any of the proposed agenda items.