All Eyes on Padam Cotton Yarns as Board Considers Game-Changing Fundraise—Will the Rally Continue?

Padam Cotton Yarns Ltd is in the limelight as its Board of Directors will deliberate on a major fund-raising exercise by way of issue of equity shares and other securities. This comes at a time when the company is already in the news with its ambitious capital restructuring, comprising a 1:10 stock split and a few issues of bonus shares in 2025.

 

Key Takeaways:

 

Fund Raising Proposal: Raising funds through issue of new equity shares and possibly other securities signaling expansion plans, strengthening of working capital, or other corporate expansion would be considered by the Board. The terms, such as the quantum and nature of the fund raising, would probably be decided upon in the following board meeting.

 

Recent Corporate Action: Padam Cotton Yarns had last week approved a 1:10 stock split effective from June 27, 2025. Except for two bonus issues of shares in advance earlier this year, the action indicates the company's interest in enhancing the liquidity of shares and rewarding shareholders.

 

Financial Performance: The company reported a whopping 710.81% rise in net profit to ₹2.26 crore for Q4 FY25, even though it fell in the quarter, and announced a ₹1 per equity share dividend, giving a thumping 22.88% return.

 

Shareholding Pattern: 100% share-holding of the company by retail investors without any holding by promoter, FII, or mutual funds, thereby making Padam Cotton Yarns a unique case in the textile sector.

 

Market Momentum: The stock has provided a whopping 1178.5% five-year return, though having seen recent corrections. During the current session, shares were trading at ₹4.37 post-split, having a market capitalization of ₹56.42 crore. In its overlap with current corporate action, the Board's fund-raising agenda has set Padam Cotton Yarns on the path to expansion and increased market involvement, and shareholders and analysts will not be sitting idly by to see what follows.

 

Source: EquityBulls, Goodreturns, INDmoney