Aastha Spintex approves 1:1 bonus shares, speeds up rooftop solar project

Textile company Aastha Spintex Limited has taken two major decisions to expand its business. The company is rapidly setting up a 1.35 MW rooftop solar project, while also announcing a bonus share issue for shareholders. At its annual general meeting on September 16, the company decided to issue bonus shares in a 1:1 ratio, meaning shareholders will get one free share for every share held. Approval was also given to raise the company's authorised share capital to Rs 100 crore.

The company had recently acquired the factory of Falcon Yarns Private Limited in Gondal, Rajkot district, Gujarat. It is at this factory that the 1.35 MW, or 1350 kW DC capacity, rooftop solar project is being set up. Formal registration for the project has been completed with the Gujarat Energy Development Agency (GEDA). Currently, 40 percent of the structure has been erected at the site. This is expected to result in significant savings in the company's production costs.

The company has announced a "three-pillar growth strategy" for its future course, which includes improving financial performance, providing better returns to shareholders, and expanding from yarn to fabric manufacturing. Eligible shareholders will receive one fully paid-up bonus share for every share held, for which a reserve fund of Rs 44.14 crore will be used. To issue the bonus shares, the company's authorised share capital has been raised directly from Rs 45 crore to Rs 100 crore. The company is also entering the business of manufacturing grey fabric and other value-added fabric products under its own brand.

Between financial years 2023 and 2025, the company's annual revenue grew from Rs 240 crore to Rs 352 crore. In the same period, net profit grew at a CAGR of 356 percent, rising from Rs 1.1 crore to Rs 23 crore. The company's operating profit margin also rose from 5.87 percent to 14.16 percent, reflecting growing investor confidence.

With the acquisition of Falcon Yarns, the company's yarn production capacity has increased from 7,700 metric tonnes to 17,457 metric tonnes, while spindle capacity has risen from 25,920 to 61,824. Managing Director Divyang Jaswant Patel said the completion of GEDA registration and the start of work on the solar project mark an important step towards strengthening the company's infrastructure. He expressed confidence that the company is moving ahead rapidly on the back of sustainable energy and expanded production.