Pashupati Cotspin Announces 3:2 Bonus Issue and Capital Hike

Bonus Ratio: 3:2; Authorized Capital: Increased to Rs 40 crore.

Reader Takeaway: Shareholders get three extra shares for every two held, pending approval via e-voting by November 6.

What just happened

Pashupati Cotspin Ltd has proposed a major corporate restructuring involving both a bonus share issuance and an increase in authorized share capital. The board has recommended a 3:2 bonus ratio, meaning investors will receive three additional shares for every two they currently hold. To facilitate this, the company will capitalize up to Rs 23.676 crore from its free reserves as of March 31, 2026. Simultaneously, the company is seeking to expand its authorized share capital from Rs 16 crore to Rs 40 crore to accommodate the new share issuance.

Why this matters

This move effectively broadens the company's paid-up equity base to Rs 39.46 crore. For retail investors, a bonus issue is often viewed as a sign of management confidence in the company's long-term liquidity and financial health. The expansion of authorized capital serves as a necessary procedural step to enable the issuance of these new shares while providing room for future equity adjustments.

What changes now

Shareholders are required to participate in the decision-making process exclusively through remote e-voting. This process commences on October 8, 2026, and concludes on November 6, 2026. Investors listed as shareholders as of the cut-off date of October 2, 2026, are eligible to cast their votes on the proposed resolutions. No physical ballots will be utilized for this corporate action.

What to track next

The key date for investors is November 8, 2026, when the company is scheduled to declare the results of the postal ballot. Shareholders are advised to ensure their KYC details and email addresses are updated with their respective depository participants to receive necessary communications and voting instructions.