share market
An upper circuit of 5% was seen in the shares of Gujarat’s integrated cotton yarn manufacturer Aastha Spintex and the price reached Rs 122. The company has announced the acquisition of Falcon Yarns, which is considered a big step towards its expansion.
After completion of this deal, the spinning capacity of the company will increase from 7,700 MT to 17,457 MT. The spindle capacity will increase from 25,920 to 61,824. This means that there will be a big increase in the production capacity of the company, due to which it will be able to meet the increasing demand of both domestic and export markets in a better way.
Demand for cotton yarn is increasing rapidly
Falcon Yarns has a modern spinning unit in Gujarat with 35,904 spindles and 9,757 MT annual production capacity. This acquisition will strengthen the manufacturing of Aastha Spintex, provide the benefit of large scale production and can also help in reducing the per unit cost. According to the company’s Managing Director Divyang Jashwant Patel, this acquisition is part of the company’s long-term growth strategy. He says that in view of the increasing cotton yarn demand, this expansion will help in providing better quality, higher production and reliable supply to the customers.
IPO of Rs 170 crore created a stir
Recently the company had successfully completed an IPO of ₹170 crore and was listed on NSE and BSE on 6 July 2026. A major portion of the funds raised from the IPO will be used for Falcon Yarns’ acquisitions, working capital and general corporate needs. Now investors will keep an eye on how quickly and effectively the company can integrate this acquisition into its business. If management is successful in expanding capacity as planned and taking advantage of operational efficiencies, this deal could provide a new impetus to the company’s growth in the long run. If we look at the financial performance of the company, there has been tremendous improvement in the last two years. Revenue of ₹240 crore in FY23 increased to ₹352 crore in FY25, while net profit increased from ₹1.1 crore to ₹23 crore. Operating profit margin and EBITDA margin also recorded significant improvement, reflecting better cost control and operational efficiency.
