Aastha Spintex board will consider a proposal for a bonus issue, declaration of a final dividend and expansion into forward-integrated textile products at its board meeting scheduled for July 23, according to an exchange filing.
The company said its Board of Directors will meet on Thursday, July 23, to consider the proposals.
The board will evaluate the issuance of fully paid-up bonus shares to existing shareholders in a ratio of up to 1:1. If approved, the bonus issue will be made by capitalising the company's free reserves. The record date, final ratio and implementation timeline will be announced after the board takes a decision, the filing said.
The board will also consider declaring a final dividend of up to 100 percent on the face value of Rs 10 per equity share, amounting to up to Rs 10 per share.
In addition, the board will deliberate on a proposal to introduce forward-integrated textile products, including grey fabric and other value-added fabric products, under the company's in-house brand.
The company said the proposed initiative is backed by its enhanced cotton yarn manufacturing capacity of 17,457 metric tonnes per annum following the acquisition of Falcon, enabling it to leverage its existing production capabilities for greater value addition.
Earlier, the cotton yarn manufacturer had announced that it secured orders worth around Rs 77 crore from various entities.
Aastha Spintex bags orders worth Rs 77 crore from various customers
Aastha Spintex's initial public offering, which was open for subscription from June 29 to July 1, was subscribed 4.64 times.
The company manufactures and trades carded, combed and compact combed cotton yarns, cotton bales and related by-products from its integrated spinning and ginning facility at Halvad in Gujarat's Morbi district.
Shares of the company settled lower in Friday's trade at Rs 107 per share on the NSE, down 7.87 percent.