Board approves higher authorised capital, recommends 3:2 bonus issue

Authorised share capital to go up from Rs.16,00,00,000/- to Rs.40,00,00,000/-, subject to shareholder approval.

Sat 3 Oct 2026

Bonus Issue Ratio

3 Bonus Equity Shares of Re. 1/- each for every 2 existing Equity Shares of Re. 1/- each

Authorised Share Capital Increase

from Rs.16,00,00,000/- to Rs.40,00,00,000/-

Board Meeting Date

October 3, 2026

Bonus Shares Credit/Dispatched By

on or before December 2, 2026

Scrutinizer Appointed

M/s. Nisarg Sharma & Associates

The board of Pashupati Cotspin met on October 3, 2026 from 5:30 p.m. to 7:45 p.m. and took two decisions that need shareholder approval.

Authorised share capital

• To be increased from Rs.16,00,00,000/- (Rupees Sixteen Crores Only) to Rs.40,00,00,000/- (Rupees Forty Crores Only).
• This also means a change to Clause V of the MOA.
• Authorised capital is the ceiling up to which a company can issue shares. It is not money raised or received.

Bonus issue

• Recommended in the ratio 3:2 — 3 Bonus Equity Shares of Re. 1/- each for every 2 existing Equity Shares of Re. 1/- each held on the record date.
• The bonus shares will come out of capitalisation of free reserves available as on March 31, 2026.
• A bonus issue gives existing shareholders extra shares without paying for them. It increases the number of shares but does not bring cash into the company.
• The record date for deciding who is eligible will be intimated after shareholder approval.

The share numbers

• Pre-bonus paid-up capital: 15784000 (Fifteen Crores Seventy-Eight Lakhs Forty Thousand) Equity Shares of face value Re. 1/- each, aggregating to Rs. 15,78,40,000/-.
• Post-bonus paid-up capital: up to 39460000 (Thirty-Nine Crore Forty-Six Lakh) Equity Shares of face value Re. 1/- each, aggregating up to Rs. 39,46,00,000/-. The actual number of bonus shares will be decided on the paid-up capital as on the record date.
• Free reserves to be used for the bonus issue: up to Rs. 23,67,60,000/-.
• Free reserves as per the audited financial statements for the year ended March 31, 2026: Rs. 1,48,31,85,283/-, stated to be sufficient for the bonus issue.

Fractional shares

• Shareholders holding equity shares in odd numbers may end up with a fractional entitlement of 0.5 Bonus Equity Share under the proposed 3:2 ratio.
• Fractional bonus shares will not be allotted. They will be consolidated and disposed of as per applicable laws, and the net sale proceeds distributed among the entitled shareholders in proportion to their fractional entitlements, after deduction of applicable taxes, expenses and costs.

Process and timeline

• The board approved the draft Postal Ballot Notice for obtaining shareholder approval for the authorised capital increase and the bonus issue.
• M/s. Nisarg Sharma & Associates, Practicing Company Secretaries, were appointed as Scrutinizer to conduct the postal ballot process through remote e-voting.
• The bonus shares are estimated to be credited or dispatched within two months from the date of the board meeting, i.e. on or before December 2, 2026.

What shareholders may watch for

• The result of the postal ballot, since both proposals are subject to shareholder approval.
• Announcement of the record date.
• The actual number of bonus shares, which will be determined by the paid-up share capital on the record date.

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