Pashupati Cotspin Ltd has declared a 3:2 bonus share issue, granting three new shares for every two held, alongside a plan to increase its authorized share capital to Rs 40 crore. Funded by capitalizing Rs 23.67 crore from its free reserves, the proposal awaits shareholder approval via postal ballot. This move signals a significant expansion of the company's equity base, with completion targeted by December 2, 2026. Shareholders should track upcoming filings for the record date announcement.
Pashupati Cotspin Announces 3:2 Bonus Issue
Bonus Ratio: 3:2 (3 new shares for every 2 held).
Authorized Capital: Increasing from Rs 16 crore to Rs 40 crore.
Reader Takeaway: Bonus issues increase liquidity for shareholders; however, the stock price will adjust proportionally on the record date.
What just happened
Pashupati Cotspin Ltd's board of directors has officially recommended a bonus issue of equity shares in the ratio of 3:2. For every two existing shares held by an investor, the company will issue three new fully paid-up shares of Re 1 each. To accommodate this expansion, the board has also initiated a process to increase the company's authorized share capital from Rs 16 crore to Rs 40 crore.
Why this matters
The bonus issue is a move to reward existing shareholders by increasing their equity stake without additional cash outflow. The company will utilize its free reserves, which stood at Rs 148.31 crore as of March 31, 2026, to fund the Rs 23.67 crore required for this issuance. This corporate action is typically viewed as a sign of management's confidence in the company's long-term financial health and capital structure.
What changes now
Following the completion of this process, the paid-up share capital will rise from Rs 15.78 crore (157.84 million shares) to Rs 39.46 crore (up to 394.6 million shares). The move requires shareholder approval, which will be sought through a postal ballot. M/s. Nisarg Sharma & Associates have been appointed as the scrutineer to oversee the e-voting process.
What to track next
The most critical upcoming details for investors are the results of the postal ballot and the yet-to-be-announced record date. The record date is the cutoff point that determines which shareholders are entitled to receive the bonus shares. The company aims to finalize the credit or dispatch of these shares by December 2, 2026.