Pashupati Cotspin bonus issue 3:2; shares to be credited by 2 December

Pashupati Cotspin Ltd has moved from planning to execution on its proposed bonus issue, with the board formally recommending the terms and setting an outer timeline for crediting the new shares.

Key terms

• Type of action: Recommended issue of bonus equity shares
• Bonus ratio: 3:2, i.e., 3 (Three) Bonus Equity Share of Re. 1/- (Rupee One only) each for every 2 (Two) existing Equity Shares of Re. 1/- (Rupee One only) each
• Face value: Re. 1/- (Rupee One only) per equity share
• Source of bonus: Capitalization of Free Reserves available as on March 31, 2026
• Pre-bonus paid-up share capital: 157840000 equity shares of face value Re. 1/- each, aggregating to Rs. 15,78,40,000/-
• Post-bonus paid-up share capital (maximum): Up to 394600000 equity shares of face value Re. 1/- each, aggregating up to Rs. 39,46,00,000/-
• Reserves to be capitalised (maximum): Up to Rs. 23,67,60,000/-
• Free reserves available: Rs. 1,48,31,85,283/- as per audited financial statements for the year ended March 31, 2026
• Record date: To be intimated later, after shareholder and other necessary approvals
• Estimated credit / dispatch date for bonus shares: Within Two months from the date of the Board Meeting i.e. on or before December 2, 2026

According to the board's outcome letter dated October 3, 2026, the directors have recommended the issuance of Bonus Equity Shares in the ratio of 3:2. This means that shareholders who hold equity shares of Re. 1/- each on the record date will be eligible to receive 3 bonus shares for every 2 shares held.

The company has clarified in Annexure A that the bonus equity shares "shall be out of Capitalization of Free Reserves available as on March 31, 2026, subject to the approval of Shareholder’s approval." The figures are stated to be based on the Audited Financial Statements for the year ended on March 31, 2026.

On capital structure, the statement in Annexure A sets out that the Pre-Bonus Paid-up Share Capital as on Date is 157840000 (Fifteen Crores Seventy-Eight Lakhs Forty Thousand) Equity Shares of face value Re. 1/- each, aggregating to Rs. 15,78,40,000/-. Post-bonus, the Paid-up Share Capital is expected to be up to 394600000 (Thirty-Nine Crore Forty-Six Lakh) Equity Shares of face value Re. 1/- each, aggregating up to Rs. 39,46,00,000/-, with the actual number of bonus shares to be determined based on the paid-up share capital as on the record date.

The company has also addressed how it will handle small holdings. The annexure notes that fractional entitlements may arise where shareholders hold equity shares in odd numbers, resulting in a fractional entitlement of 0.5 Bonus Equity Share under the 3:2 bonus issue. As the company will not allot fractional bonus shares, such entitlements will be consolidated and disposed of in accordance with applicable laws, and the net sale proceeds will be distributed among the entitled shareholders in proportion to their respective fractional entitlements, after deduction of applicable taxes, expenses and costs.

For implementation, the company estimates that the bonus shares would be credited / dispatched within Two months from the date of the Board Meeting i.e. on or before December 2, 2026, as stated in Annexure A. The record date to determine eligibility will be announced after obtaining the approval of the shareholders of the Company and such other necessary approvals, and will be intimated in due course.

The board has also approved a related step to support the enlarged capital: an increase in Authorised Share Capital of the Company from Rs.16,00,00,000/- (Rupees Sixteen Crores Only) to Rs.40,00,00,000/- (Rupees Forty Crores Only), along with a consequent alteration of Clause V of the Memorandum of Association, again subject to approval of the shareholders and other necessary approvals, according to the outcome letter.

To obtain shareholder consent, the board has approved the draft Postal Ballot Notice and appointed M/s. Nisarg Sharma & Associates, Practicing Company Secretaries, as scrutinizer for the remote e-voting process on the resolutions relating to the increase in authorised share capital and the bonus issue.