1 Free Shares On 1, 10 Shares On 10, 100 Shares On 100; Why Textile Stock Crashed 50% On 1:1 Bonus Record Date

Aastha Spintex, a textile stock, has turned ex-bonus on Monday, September 28, 2026. However, the shares have crashed by nearly 50% as it adjusted to the bonus issue ratio of 1:1. The ratio means 1 free share on 1 existing share, 10 free shares on 10 existing shares, and if you hold 100 shares and are eligible for the Aastha Spintex bonus, then you could get 100 free shares.

Aastha Spintex Share Price

At the time of writing, Aastha Spintex stock traded at Rs 38.90 apiece on BSE, after hitting an intraday low of Rs 39.21 apiece and Rs 36.99 apiece.

At the latest market price, Aastha Spintex stock has plunged over 46.5% from its last week's Friday closing price of Rs 72.74 apiece on BSE. At the intraday low, the stock has nosedived by 49.2% from the previous close.

The reason is the bonus issue.

Aastha Spintex Bonus Issue

The textile company has declared a bonus issue of 1:1 ratio, under which it will reward investors with 1 free bonus share against 1 equity share. The face value of the shares are Rs 10 each.

In total, the company will allot 44,142,190 bonus shares to eligible investors.

However, to be eligible, investors must hold the company's stock by the record date in their demat account. The company fixed September 28, 2026, as the record date to identify eligible shareholders. After this, the bonus issues will be allotted on September 29, 2026.

What Aastha Spintex Shares Crashed After Bonus?

Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives, which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

However, when a company turns ex-bonus, the face value of the stock remains the same. But the share capital reserves are reduced. The number of shares increases in the portfolio of eligible investors, while the per share value reduces in proportion to the number of bonus shares issued. Also, ratios like EPS, book value per share, etc. also reduce.

Investors should not worry about the crash, as the stock is getting adjusted to the bonus issue ratio. Once the bonus issues are allotted and credited in the demat account, the portfolio corpus will be balanced. Currently, they are facing unrealized loss.

Example: Let's say AAA company declares a 1:1 bonus issue ratio. You hold 100 shares of AAA company at Rs 50 per share.

Pre-bonus issue: 100 shares x Rs 50 per share = Rs 5000

But when bonus issue ex-date is applied, you will receive 100 free shares on existing 100 shares, taking total number of shares to 200. Also, the face value remains the same but the share price value is adjusted to Rs 25 per share.

Post-bonus issue: 200 shares x Rs 25 = Rs 5,000

Accordingly, the portfolio's is balanced once the bonus shares are allotted.

This is just an example. Gains and losses vary from investor to investor.

Aastha Spintex is a textile company and its businesses include spinners, weavers, loomers , knitters, texturisers, combers, processors, producers, hosiers, habers, dashers, cripers, ginners, embroiders, bleachers, dyers, printers, cutters, finishers, blenders, carders, doublers, importers, exporters, buyers, sellers and dealers, whether in retail, wholesale, through commodity exchange or through any other medium, in all kinds of textile, yarns, fibres and fabrics whether synthetic, artificial or natural, cotton, wool, worsted shody, silk, jute, hemp, linen, viscose, rayon, artificial silk, nylon, polyester, acrylic, polypropylene, polynosic or any other synthetic fibre or fibrous material or fabrics and textile substances.

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