Pashupati Cotspin bonus 3:2, ₹40 cr capital plan 2026

What the company has announced

Pashupati Cotspin Limited (NSE symbol: PASHUPATI; BSE scrip code: 544448) has moved ahead with a capital restructuring proposal that combines a bonus share issue with an increase in authorised share capital. The company informed stock exchanges that its board considered and approved these items at a meeting held on October 3, 2026. The agenda covered a bonus issue and “other business matters,” and the company has indicated the process will require shareholder approval.

The action is structured as a board recommendation and approval of procedural steps to seek shareholder consent. That includes a postal ballot and remote e-voting. The company also appointed an independent scrutinizer to oversee the e-voting process.

Board meeting outcome: bonus issue and authorised capital hike

At the board meeting on October 3, 2026, the directors recommended a bonus issue in the ratio of 3:2. In practical terms, shareholders will receive three new fully paid-up equity shares of face value Re 1 each for every two existing equity shares of face value Re 1 each held as on the record date.

Alongside the bonus issue, the board approved a proposal to increase the company’s authorised share capital from ₹16 crore to ₹40 crore. The company stated this would require an alteration to the relevant clause in the Memorandum of Association. Both items are subject to shareholder approval.

How the 3:2 bonus works for shareholders

A 3:2 bonus ratio means the number of shares held by an eligible investor will rise materially after the issue. The company has not announced the record date yet, and it has said the record date will be declared after shareholder approval is obtained.

Because this is a bonus issue, the shares are fully paid-up and issued by capitalising reserves rather than through a cash payment by shareholders. The face value cited is Re 1 per equity share, and the bonus shares are to be issued on the same face value.

Funding and reserves: capitalisation from free reserves

Pashupati Cotspin said the bonus issue will be implemented through the capitalisation of free reserves available as on March 31, 2026. The capitalisation is stated as up to ₹23.68 crore.

The disclosure also refers to free reserves of ₹148.32 crore. The proposed capitalisation amount is therefore a defined portion of the free reserves base, earmarked specifically to support the bonus issue mechanics.

Expected timeline and the December 2 target

The company has estimated that the bonus shares will be credited or dispatched on or before December 2, 2026. It also described the expected completion window as within two months of the board meeting date.

This timeline remains conditional on shareholder approval through the postal ballot process. Until the ballot is completed and approvals are in place, the company has not confirmed the record date that will determine eligibility.

Shareholder approval via postal ballot and e-voting

Pashupati Cotspin plans to seek shareholder consent through a postal ballot supported by remote e-voting. The board approved the draft postal ballot notice to start this process.

For governance and process integrity, the company appointed M/s Nisarg Sharma & Associates as the scrutinizer for the remote e-voting process. The scrutinizer’s role is to conduct and oversee the voting process and report the results as per the prescribed mechanism.

What changes in the equity base after the bonus

The company provided pre- and post-bonus paid-up capital figures to show the scale of the change. Pre-bonus, the paid-up share capital is ₹15.78 crore, represented by 15,78,40,000 equity shares of Re 1 each. Post-bonus, the paid-up share capital is expected to rise to up to ₹39.46 crore, represented by up to 39,46,00,000 equity shares of Re 1 each.

The authorised share capital increase from ₹16 crore to ₹40 crore is positioned as a necessary step to accommodate the enlarged share count and provide room for the revised capital structure.

Key facts table

Why the approvals and record date matter

Two practical checkpoints now determine the pace of implementation: the postal ballot outcome and the subsequent record date announcement. Shareholder approval is a trigger factor for both the bonus issue and the authorised capital increase.

The record date will be the cut-off for identifying eligible shareholders who will receive the bonus shares. Until it is declared, investors only have the board-recommended structure and the broad completion timeline to work with.

Market impact: what investors typically track next

From a market process standpoint, investors generally monitor three items in such corporate actions: the shareholder voting results, the record date, and the final credit or dispatch confirmation. Pashupati Cotspin has already provided an estimated timeline ending December 2, 2026, but has also made it clear that execution depends on approvals.

The company’s disclosure also signals a substantial expansion in the equity base, with the paid-up share capital expected to rise from ₹15.78 crore to up to ₹39.46 crore after the bonus issue. The authorised capital proposal to ₹40 crore aligns with that expanded base, ensuring sufficient headroom under the authorised limit.

Conclusion

Pashupati Cotspin’s board has recommended a 3:2 bonus issue and approved steps to raise authorised share capital from ₹16 crore to ₹40 crore, funded through capitalisation of up to ₹23.68 crore from free reserves. The next confirmed milestone is the postal ballot process, after which the company will announce the record date. Subject to shareholder approval, the company has indicated that bonus shares are expected to be credited or dispatched on or before December 2, 2026.