Daijiworld Media Network – Mumbai

Mumbai, Jul 10: Shares of newly listed Aastha Spintex Ltd surged 5 per cent and hit the upper circuit on Friday after the Gujarat-based integrated cotton yarn manufacturer announced the acquisition of Falcon Yarns Pvt Ltd to significantly expand its manufacturing capacity.

The stock opened at Rs 122.85, up 4.96 per cent from its previous close of Rs 117.05 on the BSE, and touched Rs 122.90, where it remained locked in the 5 per cent upper circuit. The company's market capitalisation stood at Rs 542.51 crore.

The acquisition is expected to more than double the company's production capacity. Following the deal, Aastha Spintex's annual spinning capacity will increase from 7,700 metric tonnes (MT) to 17,457 MT, while spindle capacity will rise from 25,920 to 61,824.

Falcon Yarns operates a modern spinning facility in Gujarat with an installedcapacity of 35,904 spindles and an annual production capacity of 9,757 MT.

Commenting on the acquisition, Managing Director Divyang Jashwant Patel said the move aligns with the company's long-term strategy of building a larger and more efficient manufacturing platform.

Aastha Spintex was listed on the stock exchanges on July 6 after raising Rs 170 crore through its initial public offering (IPO).

The shares debuted at Rs 130, a 4.41 per cent discount to the issue price of Rs 136, before closing nearly flat on the listing day. The stock ended at Rs 136.45 on the BSE and Rs 136.49 on the NSE.

The company's Rs 170-crore IPO was subscribed 4.64 times on the final day of bidding. The issue was priced in the range of Rs 125-136 per share.

According to the company, the IPO proceeds will be utilised for part payment towards the acquisition of Falcon Yarns, funding the acquired company's working capital requirements through inter-corporate deposits, and meeting general corporate expenses.