AASTHA SPINTEX SHARES RISE 9% AFTER BONUS ISSUE

Shares of Aastha Spintex gained as much as 9% after the stock began trading on an adjusted basis following the company’s 1:1 bonus issue. The shares were trading up 9.08%. The stock started trading on an adjusted basis on September 28, following the bonus issue announced by the company’s board on September 16. Under the 1:1 bonus issue, eligible shareholders will receive one additional share for every share held as of the record date, which was fixed for September 28. Investors had to hold the shares in their demat accounts at the end of trading on September 25 to qualify for the bonus shares. Shares purchased on September 28 will not be eligible for the bonus issue. Aastha Spintex had a weak debut on the stock exchanges in July, listing at Rs 130 per share on the NSE, a 4.41% discount to its IPO price. The Rs 170-crore public issue, which was open for subscription from June 29 to July 1, was subscribed 4.64 times. The IPO carried a price band of Rs 125–136 per share. The company manufactures and trades carded, combed and compact-combed cotton yarns, cotton bales and related by-products. Its operations are based at an integrated spinning and ginning facility in Halvad, in Gujarat’s Morbi district.